Serame warns VAT tricksters
Chakalisa Dube | Monday June 12, 2023 06:00
Serame was speaking at a Botswana Democratic Party (BDP) Women’s Wing capacity-building workshop here recently. She also used the event to give insight into several policies that her ministry has recently introduced.
The government recently introduced VAT exemptions on certain products as part of efforts to alleviate the cost of living for citizens. Under the amendments, VAT exemptions have been implemented on items such as cooking oil, liquid petroleum gas, salt, infant formula, baby diapers, sanitary pads or tampons, and condoms. Tractors and various agricultural implements have been changed from exempt to VAT zero-rated.
However, there have been concerns that some retailers are not complying with the new VAT amendments and Serame said government is aware of the trend. She said serious action will be taken against offenders.
“We continue reviewing our VAT regimes to align them with emerging trends as evidenced by the recently introduced VAT Act of 2023 among others. “We have some of our officials who have been going around to gauge the level of compliance of the new VAT regulations by retailers or supermarkets and we know that some are yet to comply. “Where there is little or no compliance we will act. “Firmer penalties will be imposed against any transgression,” she said.
Serame also urged members of the public to enhance their knowledge of the new VAT amendments to avoid falling victim to businesses that do not comply.
“If consumers come across any transgression against the VAT regulations, they should also notify authorities.”
Some supermarkets have been under the spotlight for unnecessarily overpricing their products in the last few years. Last year some were accused of unwarranted price hikes of grains and their derivatives such as wheat, maize, pasta, flour, and bread.
Furthermore, retailers and supermarkets have been accused of taking advantage of the global grain supply chain challenges caused by the Russia-Ukraine war to engage in unfair price hikes, in the process contributing to high inflation. The brunt of the hikes was particularly felt by low-income consumers who felt that the government was not doing enough to protect them.