Inflation hits 12.7% prompting temporary reversal of 2021 VAT rise
Botswana is to cut VAT from 14% to 12% from 1 August until 31 January 2023.
Botswana raised VAT to 14% in April 2021. The measure was to shore up revenues following the COVID-19 crisis which has affected its tourism and mining sectors. As of end of 2021, Botswana had recovered to its pre-crisis output level thanks to a strong rebound in demand for diamonds, a successful vaccination campaign, and policy support
Since then, post-COVID global supply chain and the Russian invasion of Ukraine has pushed inflation to nearly 13%. This is mainly caused by transport costs.
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