Govt Exempts Some Food Items From VAT

| January 19, 2015

Government will exempt some goods from the Value Added Tax (VAT).

Addressing a kgotla meeting in Kanye at Ruele ward, Member of Parliament for Kanye South, Mr Abram Kesupile said even though VAT was necessary as government needed the proceeds to service people and use it in various developments, government had reached a decision to exempt some commodities from VAT.

He said VAT, just like the petrol levy, assisted in other important services and developmental activities needed for the growth of the country. He said goods, which were exempted from VAT included fruits, vegetables, bread flour, milk, rice and samp to enable consumers to supplement their daily diet for health purposes.

Mr Kesupile said this meant that prices for such commodities would be reasonable because there was no VAT. He said farmers who bought tractors for farming purposes would also be exempted from VAT.

Mr Kesupile therefore urges the public to be honest when declaring goods to relevant authorities to ensure that they don’t deprive the government its right to claim VAT. He warned people against dishonesty saying declaring wrong information to a government officer was an offence.

On other issues, Mr Kesupile said government had increased poverty eradication initiatives to 45 products and urged residents to seek assistance from relevant authorities to improve their livelihoods and standard of living.

Source : BOPA

Source : Botswana Daily News

Category: Business & Finance

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