Africa-Press – Botswana. Vice President Slumber Tsogwane has advised against the idea of assuming that tax is a ‘burden’ and undervaluing its importance as the primary source of revenue for government.
Mr Tsogwane was speaking during a kgotla meeting in Orapa on Thursday.
“Tax is critical for economic growth and investment in developments.
Its purpose is to raise resources for government to deliver essential public services,” he said in response to one Mr King Disana, who had called for reduction of income tax.
Mr Disana had noted during the kgotla meeting that some people’s net pay was largely dented by income tax.
The Vice President further explained that government imposed tax on citizens and businesses as a means of raising revenue to meet budgetary demands.
He said the cost of some services, which government offered to the public for free such as education could only be recovered in the form of tax.
Mr Tsogwane emphasised that payment of tax could not be halted, but be reduced.
He further noted that government had exempted payment of tax on farm products and equipment to support farmers.
He indicated that Botswana could not be reliant only on diamond revenue, noting that tax should be utilised to generate revenue for investment on infrastructural developments and human capital, among others.
He stated that some big companies that failed to pay tax created a gap in the economy and led to a shortfall in revenues intended to cover some of the developments.
Tax in Botswana, he said, was low compared to other countries, and had been reduced due to inflation.
Furthermore, Mr Tsogwane, also Member of Parliament for Boteti West, acknowledged the shortage of employment opportunities for graduates, but noted that the private sector should play its role in creating job opportunities.
The wage bill, he said, was too high and exceeded the development budget, citing that a larger percentage of the budget covered payments for civil servants. Orapa councillor, Mr Chilume Balopi called for a government primary school in the mining town.
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