VAT exemption: some retailers fail to cut prices

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The exemption of Value Added Tax (VAT) on basic foodstuffs effected by government beginning of the year has not fully trickled down to the consumers. Some retailers have increased prices of commodities since January.

In a bid to increase affordability of basic food commodities for low income earners and encourage consumption of healthy meals, government removed the 12% VAT on items that include brown bread, vegetables, fruits, rice, samp, milk and bread flour, effective 25 January 2015.

A snap survey carried out by the BusinessWeek around Gaborone this week revealed that some retailers have knocked down prices, while others have held out with the old pricing. Other retailers have increased prices of the affected commodities.

Editor's Comment
Happy Independence!

We are 56 years old and what do we have to show for it? Looking at where Botswana started and where it is today, there are a lot of developments, but whether the developments match the number of years we have enjoyed as a country is a topic for another day.The fact that cannot be denied is we have seen major developments, but we are still lacking in several pertinent areas.Our beautiful country imports almost everything. We import fuel, food,...

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