Coronavirus: Botswana Increases VAT after Diamond Exports Slump

By John Jeffay / February 03, 2021 / www.idexonline.com / Article Link

(IDEX Online) - Botswana is increasing its value-added tax to boost revenue after a disastrous year for diamonds and other minerals.The country relies on mining for 80 per cent of its foreign earnings and has been badly hit by the global pandemic.Finance minister Thapelo Matsheka announced a VAT increase from 12 per cent to 14 per cent when he presented his annual budget on Monday, the first time it has been raised in a decade.Earlier this week it was reported that rough exports by Debswana, which controls most of Botswana's diamond production, fell 30 per cent in 2020 from $3.05bn in 2019 to $2.02bn as a result of the global pandemic.Pic shows Jwaneng mine, Botswana

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