CCA to carry out price surveys in September
Pauline Dikuelo | Tuesday August 16, 2022 06:00
Briefing Parliament recently, Minister of Finance and Economic Planning, Peggy Serame said the last inspection was done at the beginning of August before the statutory instrument came into effect. “CCA carries out price surveys and inspections periodically and usually publishes prices of various commodities every month,” she said.
This comes after consumers decried that VAT relief measures by the government have not yet been reflected on most shop shelves. The measures which kicked in this month are due to run until January next year.
Under the measures, cooking oil, and LPG gas have been zero-rated for VAT while VAT for all other commodities and services has been cut from 14% and 12%. “I am aware some businesses may be tempted to take advantage of the reduced VAT rate to maximise their profit margins.
However, CCA has powers to take action against any perpetrators and impose a fine of 10% on turnover in any trader which participates in price fixing and collusion,” she said.
The Finance minister said before the reduced rate came into force, they engaged the Ministry of Investment Trade and Industry, Botswana Unified Revenue Services (BURS), Business Botswana, CCA as well as Consumer Watchdog to employ these agencies to work together to monitor compliance with the statutory instrument. “Light retailers were represented and made commitments during this meeting.
I, therefore, employ all business to ensure they comply with the amendment, they have a responsibility to this action to act right ad abide by the conditions of the business licences that government has issued them,” she said. Under the VAT Act, any amount of tax charged by and paid to any registered person has to be recovered by BURS as a debt due to the state.
If a trader collects VAT and fails to pay to BURS, a route of execution shall be issued against that trader. Serame said the statutory instrument using the VAT rate from 14% to 12% is a legal instrument which should be complied with and failure to do so faces legal consequences. “If a trader charges 14% while the current VAT has been reduced to 12% and pays it to BURS, the excess has to be refunded to the consumer, if a trader charges 14% and pays only 12% to BURS that is fraud which is a criminal offence.
The VAT act has penalties for various offences including those who make false or misleading statements, obstruction of tax officers, the ultimate action being the closure of premises in case of repeating breaches of the act,” she said. Further, she said BURS is empowered to monitor compliance with all tax legislation and continues to do so. To this effect at the end of each filing period, each taxpayer is required to file returns showing taxes they have charged during the period against the taxes they have paid to BURS.