Tax free but poor

Over 60 percent of waged employees do not earn enough to be taxed

Over 60 percent of the wage-earning public pay nothing to the taxman as they fall below the Income Tax threshold, a recent study has revealed.

A Botswana Multi-topic Household Survey (BMHS) discovered that of the country’s waged employees, 63.8 percent do not earn enough to trouble the taxman.

Of those who remit something to the taxman, the report indicates that 10.2 percent fall in the range of less or equal to P500. Those that pay between P501 to P1, 000 and P1, 001 to P2, 000 make up 3.7 percent and 4.6 percent of the salary-earning community respectively.

The same report indicates that over 70 percent earn less than P4, 000 a month.

Of the over 500, 000 employees that the survey covered, it was found that 25.7 percent earn between P1, 001 to P2, 000, which rules them out of any income tax deductions.

 

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