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Botswana: BURS Frustrates BDF Retirees

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Botswana Revenue Service (BURS) Chief, Jeannette Makgolo has refuted recent claims made by the Minister of Defence and Security, Kagiso Mmusi, regarding the payment of pensions to retired soldiers.

Speaking in an interview with this publication, Makgolo stated that to her “knowledge, none of the retired soldiers have received their pension payments”, contradicting the minister’s assertions. Minister Mmusi has publicly said that the first batch of pension payments to retired members of the Botswana Defence Force (BDF) has been made. However, Makgolo dismissed this claim, stating, “As far as I know, no payments have been made to the retired soldiers. We are still in the process of addressing the outstanding issues related to these payments.”

Makgolo was asked the question of whether they will be taxing the funds, which the cabinet, has ruled should be exempt from tax. Mmusi confirmed to this publication that no changes have been made regarding exemption from tax. “Yes it is true that the funds will be exempted from tax,” he said. Adding to the complexity of the situation, BURS is reportedly hesitant to exempt the funds from tax demanding assistance in developing a model to exempt the retired soldiers from certain tax obligations. This exemption model was seen as a critical step in facilitating the smooth and timely disbursement of the pension funds by the executive.

An official at BURS who preferred anonymity the issue is further complicated by the fact that some retirees were already owing huge amount of tax, “over the model issues, we have been receiving a lot of retired soldiers looking for tax clearance certificates and we were not coping. The issues are just complex. We are under pressure to deliver, as the issue is reportedly being used for political gain. It is claimed that the President has assured retired soldiers that payments will be made before the end of July,” said a source at BURS.