Botswana’s Investment, Trade and Industry Minister, Vincent Seretse said Tuesday that the government aims to cut corporate tax by up to 77 percent for investors in a mining town South East of the capital.
This he explained was part of a package to attract investors to a region hit by the recent collapse of BCL Mine. BCL Mine was put under provisional liquidation in October last year resulting in close to 8,000 jobs being lost in the Selebi-Phikwe region of 50,000 people.
Mr Seretse said the measures include fiscal incentives, government off-take, provision of land and a one-stop service centre. The fiscal incentives include five percent corporate tax for the first five years, 10 percent corporate tax thereafter and zero customs duty on imported raw materials. Corporate tax in Botswana stands at 22 percent, while companies in the manufacturing and financial services and those registered with the Innovation Hub pay 15 percent corporate tax.