Exceeding target by 1.9 %
Botswana Unified Revenue Service (BURS) continues to show improvements in executing its mandate of tax collection.
The organisation - which is tasked with among other duties, assessment and collection of tax revenue on behalf of the government - collected P32 Billion of tax revenue during the 2014 financial year. The information is contained in the BURS 2014 Annual Report which was released recently.
BURS Commissioner General Ken Morris says the year showed a positive sign of growth despite the fact that non-mining sector performed below expectation. “Much growth was largely attributed to the mining sector which grew by 10.6 percent, an improvement from the 7.0 percent contraction of the sector experienced during 2012.
He observes that the positive growth could also be attributed to recent initiatives that are being implemented by the revenue service to ensure compliance and efficiency. The income tax, which increased by 35.1 percent from P10.2 billion to P13.8 billion, is accredited for growth in revenue collection thereby surpassing the targeted collection by 1.9 percent.
While the income tax collection increased by a significant 35.1 percent, collections of VAT and SACU receipts declined by margins of 7.3 percent and 7.4 percent separately. Even though collection of SACU receipts declined, Botswana collected a share of P13.2 billion from the Common Revenue Pool (CRP) ahead of Namibia, Swaziland and Lesotho and only beaten by South Africa which collected R36.7 billion.
In the past financial period, BURS had 432 seizures of which 75 percent were due to non-declaration of goods. Statistics shows that the number of seizures were dominant at the beginning of the year going into the middle of the year and falling steeply from October down to March. It is shown that most of the confiscations, about 54 percent were carried at the North region border posts, followed by central and the South region. The South Central region recorded the lowest repossessions at two percent.