BOTSWANA BUDGET SPEECH HIGHLIGHTS
The Minister of Finance and Economic Development, Hon. Kenneth Matambo, presented the 2019 Budget Speech to Parliament in February 2019.
The 2019/2020 budget proposals emphasize the need for Botswana to consolidate development gains for further economic development.
Key highlights:
- Growth rates forecast are 4.5%, 4.2% and 4.8% in 2018, 2019 and 2020, respectively
- The projected 2019/20 budget deficit is estimated at P7.34 billion representing minus 3.5% of GDP
- The revised budget forecast for 2018/2019 is a deficit of P6.96 billion compared to the initial estimated deficit of P3.59 billion
- The government has reviewed the Botswana International Financial Services Centre tax regime which led to the amendment of the Income Tax Act by Parliament in December last year
- The Minister confirmed the publication of the Income Tax (Amendment) Act, 2018 – Act No.38 of 2018 amending the anti-avoidance provisions and introducing Transfer Pricing (TP) legislation. The effective date of the legislation is 1 July 2019
- A Bill to amend the Transfer Duty Act will be presented to Parliament in March 2019
- The Capital Transfer Tax Act will be amended to align it to the Transfer Duty Act
No changes to PAYE rates proposed.
Contact our legislation team at info@crs.co.za if you require any additional information.
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