VAT increase a 'consumer penalty' - BIDPA chief
Wednesday, February 10, 2010
For 2009/10, the country's economy contracted by 4.6 percent and - according to Fidzani - the five percent growth predicted by government for 2010/11, will be undermined by the two percent increase to Value Added Tax (VAT). For 2010/11, government expects to earn P5.5 billion from VAT, which will be the third largest contributor after non-mineral and mineral revenues.
Finance and Development Planning Minister, Kenneth Matambo on Monday announced that VAT would climb to 12 percent with effect from 01 April 2010. The increase is designed to buttress government coffers, in light of projected lower mineral and customs revenues going forward.
The Ministry of Agriculture, local producers, retailers, and industry associations must work together to overcome the obstacles hindering vegetable production and distribution.This collaborative approach is essential to improve the availability, quality, and affordability of vegetables in the market.Firstly, the Ministry of Agriculture should provide support and guidance to local farmers to enhance their productivity and efficiency. This could...