COVID-19 crisis forces tax hike
The African state of Botswana has been forced into a Value Added Tax rate rise from 12% to 14%. The measure is to shore up revenues following the COVID-19 crisis which has affected its tourism and mining sectors. There will also be an increase in the sugary drinks tax.
The country has seen a sharp decline in its economy in 2020 – almost 8% contraction. But this is expected to bounce back in 2021 as the lockdown eases.
The average VAT rate in Africa is 16%, to this increase will still keep the tax burden low for the region. Check global VAT and GST rates with VAT Calc’s tracker.