Thursday, October 29, 2020

Ntuane to move motion on regulation of repatriation of profits 

Gaborone West South Member of Parliament, Botsalo Ntuane, is to notice a motion in which he intending to ask the government to introduce a policy that will require investors to repatriate only a certain amount of their profits after winning government tenders.

He said the big chunk of profits should be reinvested in Botswana.

Ntuane was unhappy with a response by Assistant Minister of Finance and Development Planning, Vincent Seretse, that the government did not intend to review the policy on repatriation of profits.

Ntuane has been at the forefront of calls on government to come up with a policy that will regulate the repatriation of profits accrued from government tenders.

The legislator has said the issue was of great concern because many people were winning tenders and repatriating profits without investing in the country. He was worried that the so-called investors were using the profits to set up businesses in their own countries.

Ntuane is of the view that certain profits should be invested in the country whenever an investor wins a government tender. He said investing a portion of profits locally would stimulate the economy.

In his response to a question by Tonota North Member of Parliament, Fedilis Molao, Assistant Minister Seretse said it is not time to have a policy on repatriation of profits.

He indicated that there was no need to introduce such a policy since the profits of foreign investors are already subject to standard rates of corporate income tax. Seretse explained that, through tax, the country is able to get its fair share from any foreign investment proceeds.

He indicated that the introduction of such a policy would be in defiance of standard international norms.

Seretse stated that the move will require the explicit approval of the International Monetary Funds to be implemented. Seretse feared that such policy action will undermine efforts to attract foreign investment in Botswana.

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