Finance · South Africa
Botswana Proposes Income Tax Hike Amid Diamond Revenue Drop
Moneyweb · 2026/02/10
Summary
Botswana is facing financial challenges as diamond sales have dropped, causing a slump in income from this key resource. Diamonds have been a major part of the country's earnings, contributing an important share to the government’s budget. With mineral income expected to make up about 16% of Botswana's budget revenue next year, the government is considering raising income taxes to make up for the shortfall. This move aims to ensure that the country has enough money to cover its expenses and continue to support public services. However, higher taxes could affect households and businesses, making it more expensive for people and companies to live and operate in Botswana. The government needs to balance the need for revenue with keeping the economy stable and growth-friendly. The diamond market’s challenges highlight how dependent Botswana is on this industry and the importance of diversifying the economy to avoid future financial risks.
OnABudget takeaway: Higher income taxes in Botswana may increase the cost of living and doing business, so consumers and small business owners should prepare for tighter budgets. Investors should watch how these changes affect Botswana’s economy and investment climate.