S Africa raps Botswana, Namibia on tax
Finance
Botswana has reacted with surprise to strong criticism from the South African government that its corporate tax rate of 15% is too low. Both Botswana and Namibia have structured the rate into their packages of incentives aimed at luring foreign investors. This compares with the South African equivalent of 25%.
Earlier, South Africa’s finance minister, Trevor Manuel, accused Namibia and Botswana of starting “a race to the bottom” by offering bargain incentives to attract investment. Alan Boshwaen, director of Botswana’s investment centre, said Botswana’s tax rate was generally lower than South Africa’s; its top individual income tax rate was 25%, compared with South Africa’s 42%. “We attract investors by creating the right infrastructure and incentives,” says Boshwaen.
Copyright International Communications Mar 2005
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