Presentation on theme: "Nigel Dixon-Warren. Introduction Does Botswana need tax? Government revenues* (31/03/09 = P30bn): Income Tax (incl CTT)P8bn (26.7%) VATP4.25bn (14.2%)"— Presentation transcript:
Introduction Does Botswana need tax? Government revenues* (31/03/09 = P30bn): Income Tax (incl CTT)P8bn (26.7%) VATP4.25bn (14.2%) CustomsP7.75bn (25.8%) Mineral royalties & DivsP6.7bn (22.3%) Divs from parastatals**P1.4bn (4.7%) Everybody elseP1.9bn (6.3%) *excludes sales of bonds and treasury bills of P1.95bn ** includes Bank of Botswana P1.3bn
Sources of tax revenue Income Tax including; Withholding Tax (PAYE) Other Withholding Tax Capital Gains Tax Capital Transfer Tax Value Added Tax Customs & Excise (CCU)
But what about.... Alcohol levy Fuel levies Transfer duty Training levy....any revenue raising legislation which has a provision allowing for transfer to the consolidated fund...
Direct Taxes Income Tax Historically Botswana was source based (as opposed to residence / worldwide based) Current scenario: Companies – worldwide income Individuals (expatriate) – source Individuals (citizens) – worldwide Where to from here...? Challenges (and opportunities) – lack of Board of Adjudicator / High Court Decisions Botswana is a “fertile” country for tax interpretation
Indirect Taxes VAT commenced in July 2002 – based on “best practice” internationally Classic “input / output” system – resulting in consumer bearing the tax Self assessment system
The future... Anyone in receipt of income must register and submit tax returns; Lifestyle audits; Cross-referencing of information; Simplified tax system?