VAT will push inflation out of range `til 2011-BoB

source: Mmegi
Staff Writer

Mainly driven by the increase in Value Added Tax (VAT) effective from April, inflation will not be expected to fall back within the Bank of Botswana’s 3 to 6 percent objective range until the first quarter of next year.

VAT will increase from 10 percent to 12 percent in April as announced in the national budget for 2010/11 recently.A statement released by BoB PRO Chepete Chepete yesterday says the Monetary Policy Committee (MPC) anticipates that following a short-term spike resulting from the impact of the increase in VAT, inflation will fall within the 3 to 6 percent objective range only in 2011.

Inflation, which registered a remarkable decrease in 2009 that led BoB to [continue reading]


%d bloggers like this: