- Botswana’s VAT gap rose to 5.8% of GDP in 2024, up from 4.9% in 2017.
- The main driver was a worsening compliance gap, not the tax structure; the policy gap stayed near 3% of GDP.
- Most non-compliance comes from underreported or unreported VAT liabilities, especially in trade, transportation, mining, and manufacturing.
- Recommendations include building BURS analytical capacity, improving data coordination with Statistics Botswana, and strengthening risk management, enforcement, and audits.
Source: imf.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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