Debating her motion, councillor for Thakadiawa Ward, Evlyn Kgodungwe, said Batswana are hardest hit by high water tariffs levied by Water Utilities Corporation (WUC) as it is VAT inclusive. He said this was initially so as the operating costs was geared at higher income earners and said this in turn affected the low-income earners and poorer consumers. "In addition, the WUC charges VAT on all new connection fees and monthly bills which could mean higher costs for users migrating from the Department of Water Affairs and local authorities," the councillor argued.
She said in March this year, the government received P62 million in VAT via water charges and P53 million in March 2009. Kgodungwe said these figures indicate that the corporation may be unwilling to forego VAT for its new consumers. The councillor repeated the Selebi-Phikwe Economic Diversification Unit plea that government should review the VAT on water since it will affect the poverty eradication program, especially for people with water pipes within their plots.
