Botswana is moving to raise both corporate and personal income taxes as a response to declining diamond revenue and a growing budget deficit. The southern African nation, heavily reliant on diamond exports, is seeking to stabilize its finances amid falling global demand for the precious stones.

The government's proposal comes as diamond prices have weakened, squeezing one of Botswana's primary revenue sources. With diamonds accounting for a significant portion of government income, the revenue slump has created fiscal pressure that officials are now addressing through tax increases.

By broadening its tax base, Botswana aims to reduce its dependence on volatile commodity markets and create more stable funding for public services. The move reflects the challenges faced by resource-dependent economies when global prices fluctuate, forcing governments to adjust fiscal policies to maintain economic stability.