Heavy leakages in VAT collection – WB

source: Mmegi
BRIAN BENZA
Staff Writer

Government can potentially raise more than twice the P4.3 billion it collected in Value Added Tax (VAT) last year if proper measures are taken to plug leakages, the World Bank reckons.

Although the VAT rate is currently at 12 percent having been increased from 10 percent early this year, the World Bank estimates that the effective rate of VAT in Botswana is only around four percent due to leakages blamed on many factors, including non-compliance and a long list of exemptions.

This means government has the potential to multiply at least by two-and-half times the P4.3 billion in VAT revenue it raked in [continue reading]

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