VAT increment, a double blow far Selebi-Phikwe

The Minister of Finance and Development Planning, Kenneth Matambo announced in his budget speech last week that the VAT increase which is effective from April, is one of the many measures that the government has taken to get total estimated revenues as minerals revenues is not expected to reach normal levels until the 2012-2013 financial year. There was also no salary increase for civil servants for the second year running.

Speaking to Mmegi in an interview, Business Package Consultants Director, Dzimmbire Elliah Chimbwete said VAT increase has negative and positive impact to businesses and individuals. He explained that for individuals, the cost of goods and services will go up due to the two percent that has been added. He complained that due to the misconception by some businesses, they will just increase prices because of the announcement.