- Sets a bold target to raise P120 billion by March 2029.
The Botswana Unified Revenue Service (BURS) has reported a record-breaking P61 billion in revenue collection for the 2024/2025 financial year—an increase of around 4 percent despite a tough economic environment.
Commissioner General Jeanette Makgolo hailed the achievement as a historic milestone, noting that it surpassed the tax agency’s target of P58.7 billion.
“This collection will go into the annals of history since it marks the highest figure that BURS has ever attained since its establishment, particularly during a time when the economy is declining,” Makgolo said at a recent press briefing.
The top performers were Value Added Tax (VAT) and receipts from the Southern African Customs Union (SACU), which helped offset a notable shortfall in Income Tax collections. VAT brought in P14.4 billion, exceeding the target of P11.2 billion by P3.1 billion—or 28.15 percent. Makgolo said this reflects resilient domestic consumption despite the broader economic slowdown.
SACU receipts also outpaced expectations, bringing in P27.5 billion against a target of P26.7 billion—a performance rate of 103.20 percent.
“This good performance is due to the favourable exchange rate,” Makgolo explained.
Not all tax streams showed similar strength. Income Tax collections totaled P18.9 billion, falling short of the P20.7 billion target by P1.7 billion—a performance rate of just 91.58 percent. The shortfall is largely attributed to challenges in the mining sector, a mainstay of the economy. Weak global demand for diamonds, low prices, and increased stockpiling by diamond dealers have all put pressure on mineral tax receipts. Non-mineral income taxes also struggled due to sluggish economic activity, declining corporate profits, and growing compliance issues.
“The continued need to strengthen compliance and enforcement efforts in this tax type is clear,” Makgolo said.
With diamond revenues dwindling and public finances under strain, BURS’s performance has become a crucial pillar of fiscal stability. In the current 2025/26 financial year, the government faces a budget deficit, with total revenue and grants projected at P75.4 billion. BURS is expected to contribute P60.4 billion—about 80.10 percent of the total—to help fund government operations and development priorities.
“In the last five years, on average, 75 percent of the government’s resource envelope came from the revenue collected by BURS,” Makgolo noted.
Aligned with Finance Minister Ndaba Gaolathe’s push to broaden the domestic revenue base, BURS is pursuing a sweeping reform agenda. The agency is finalising reviews of three key laws—the Tax Administration Bill, the Value Added Tax Act, and the Income Tax Act—in an effort to modernise tax collection.
Among the flagship reforms is the planned introduction of VAT on digital trade by September 2025. The measure seeks to create a level playing field between online platforms and traditional businesses, capturing revenue from previously untaxed e-commerce transactions.
BURS is also rolling out an Electronic VAT Invoicing Solution by March 2026, which will allow real-time tracking of VAT transactions to reduce evasion and improve compliance.
Another major initiative is a fiscal marking and monitoring system for excisable goods such as alcohol and tobacco, set to launch by September 2025. The system will help clamp down on smuggling and counterfeiting, securing revenues vulnerable to illicit trade.
Together, these measures aim to reduce dependence on traditional revenue streams and unlock new sources of income. BURS has set a bold target to raise P120 billion by March 2029.
