VAT increase a `consumer penalty` – BIDPA chief

source: Mmegi
MBONGENI MGUNI
Staff Writer

The Executive Director of the Botswana Institute of Development Policy Analysis (BIDPA), Happy Fidzani, says government’s decision to increase Value Added Tax is tantamount to “penalising consumers,” and will stem the country’s economic growth.

For 2009/10, the country’s economy contracted by 4.6 percent and – according to Fidzani – the five percent growth predicted by government for 2010/11, will be undermined by the two percent increase to Value Added Tax (VAT). For 2010/11, government expects to earn P5.5 billion from VAT, which will be the third largest contributor after non-mineral and mineral revenues.

Finance and Development Planning Minister, Kenneth Matambo on Monday announced that VAT would climb to 12 percent with effect from 01 April 2010. The increase is [continue reading]

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