• BVI ships over 500 000 doses of FMD vaccines to SAJuly 2, 2025
    … as the country grapples with the worst outbreak in years STAFF WRITER RelatedPosts BVI ships over 500 000 doses of FMD vaccines to SA Tshekedi in BPF race BTCL enjoys strong growth editors@thepatriot.co.bw Botswana Vaccine Institute (BVI) has… Read more: BVI ships over 500 000 doses of FMD vaccines to SA
  • Tshekedi in BPF raceJuly 2, 2025
    Launches campaign ahead of BPF elective congress Tshekedi is heir to BPF throne, an Ian Khama’s creation – Analyst BAKANG TIRO editors@thepatriot.co.bw RelatedPosts BVI ships over 500 000 doses of FMD vaccines to SA Tshekedi in BPF race BTCL… Read more: Tshekedi in BPF race
  • CHOPPIES – FINANCE MANAGERJune 30, 2025
    RelatedPosts CHOPPIES – FINANCE MANAGER LIQUID INTELLIGENT TECHNOLOGIES BOTSWANA – SOLUTIONS ARCHITECT LIQUID INTELLIGENT TECHNOLOGIES BOTSWANA – HEAD OF SALES
  • BTCL enjoys strong growthJune 30, 2025
    Revenue jumps 4% to P1.49 billion Strong 2024 growth attributed to strategy Profit before Tax reaches P259 million, up 30%   BAKANG TIRO RelatedPosts BVI ships over 500 000 doses of FMD vaccines to SA Tshekedi in BPF race… Read more: BTCL enjoys strong growth
  • Motsepe, Butterfly’s last laughJune 30, 2025
    Court orders Botswana govt to apologise to Bridgette Motsepe Apology to cover Ian Khama, Isaac Kgosi, Welheminah Maswabi Botswana to settle huge legal bills, costs for publishing apologies As former President Mokgweetsi Masisi’s blunder haunts Botswana STAFF WRITERS editors@thepatriot.co.bw… Read more: Motsepe, Butterfly’s last laugh
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Friday, July 4, 2025
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Subscribe
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

VAT increase to fuel inflation growth

Ricardo Kanono by Ricardo Kanono
March 4, 2021
in Business
237
0
BOB Governor Moses Pelaelo

BOB Governor Moses Pelaelo

491
SHARES
1.4k
VIEWS
ShareShareShare

  • Govt adjusts VAT to 14% from 12%
  • BoB cautions of high inflation risks
  • Economy to grow by 8.8% in 2021

BAKANG TIRO

RelatedPosts

BVI ships over 500 000 doses of FMD vaccines to SA

BTCL enjoys strong growth

From tenderpreneurship to true entrepreneurship

editors@thepatriot.co.bw

The central bank, Bank of Botswana (BoB), forecasts that government’s decision to increase the Value Added Tax (VAT) from 12% to 14% will increase inflationary pressure by 1.44% in Q2 of 2020.

Statistics Botswana’s (SB) Consumer Index Data showed that inflation increased from 2.2% in December 2020 to 2.3% in January 2021, representing 0.1% growth amid a trembling economy.

But, BoB says inflation is forecast to revert to within the objective range in second quarter of 2021.

This, according to BoB, is as a result of taking into account the expected increase in the domestic demand in response to the accommodative monetary conditions such as the increase in VAT.

Bank Governor Mose Pelaelo while presenting bank’s Monetary Policy Committee (MPC) decision on Thursday said the risks to the inflation outlook are assessed to be balanced.

“Upside risks relate to the potential increase in international commodity prices beyond current forecasts, aggressive action by governments and major central banks to bolster demand as well as the anticipated supply constraints due to travel restrictions and lockdowns, though abating,” he said.

Domestically, Pelaelo said accelerated implementation of the Economic Recovery and Transformation Plan (ERTP) or additional rise in government levies and taxes could lead to higher inflation.

“These risks are moderated by weak domestic and global economic activity, which could be exacerbated by the periodic lockdowns and other forms of restrictions due to emergence of new COVID-19 variants and the possible decline in international commodity prices,’’ he added.

Furthermore, BoB cautions that implementation capacity constraints could hinder the effectiveness of policy stimulus and ERTP initiatives, thus resulting in lower inflation.

The Ministry of Finance and Economic Development and the International Monetary Fund (IMF) projected a sharp deterioration of economic growth for Botswana by 7.7% in 2020, compared to the earlier contraction of 8.9% before rebounding to significant growth of 8.8% in year 2021.

The IMF forecasts the domestic economy to contract by 9.6 percent in 2020 compared to the decline of 5.4 percent in the April 2020 World Economic Outlook, before rebounding to a growth of 8.6% in 2021.

But BoB says that even with recovery projected in 2021, the contraction in 2020 equates to more than a year’s loss of output growth.

“Economic activity in South Africa also remains subdued and the South African Reserve Bank projects GDP to have contracted by 7.1 percent in 2020, but to rebound to the growth of 3.6 percent in 2021. Global output is estimated to have declined by 3.5 percent in 2020 but to also rebound to a growth of 5.5 percent in 2021, on account of expectations of a vaccine-powered strengthening of activity and additional policy support in major economies,” Pelaelo buttressed. Meanwhile, Bank of Botswana decided to maintain the Bank Rate at 3.75 percent again.

Related

Tags: BAKANG TIROBank of Botswana (BoB)

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

De Beers buoyant on growth

Next Post

Kablay, Motsamai warn MPs against greed

Related Posts

BVI ships over 500 000 doses of FMD vaccines to SA
Business

BVI ships over 500 000 doses of FMD vaccines to SA

July 2, 2025
BTCL enjoys strong growth
Business

BTCL enjoys strong growth

June 30, 2025
From tenderpreneurship to true entrepreneurship
Business

From tenderpreneurship to true entrepreneurship

June 27, 2025
Digital Public Infrastructure as a Strategic Imperative
Business

Digital Public Infrastructure as a Strategic Imperative

June 27, 2025
Be a problem solver – Tips from tech-preneur Mothooagae
Business

Be a problem solver – Tips from tech-preneur Mothooagae

June 25, 2025
BoB warns banks
Business

BoB warns banks

June 23, 2025
Next Post
Kablay, Motsamai warn MPs against greed

Kablay, Motsamai warn MPs against greed

Please login to join discussion
  • BVI ships over 500 000 doses of FMD vaccines to SAJuly 2, 2025
    … as the country grapples with the worst outbreak in years STAFF WRITER RelatedPosts BVI ships over 500 000 doses of FMD vaccines to SA Tshekedi in BPF race BTCL enjoys strong growth editors@thepatriot.co.bw Botswana Vaccine Institute (BVI) has… Read more: BVI ships over 500 000 doses of FMD vaccines to SA
  • Tshekedi in BPF raceJuly 2, 2025
    Launches campaign ahead of BPF elective congress Tshekedi is heir to BPF throne, an Ian Khama’s creation – Analyst BAKANG TIRO editors@thepatriot.co.bw RelatedPosts BVI ships over 500 000 doses of FMD vaccines to SA Tshekedi in BPF race BTCL… Read more: Tshekedi in BPF race
  • CHOPPIES – FINANCE MANAGERJune 30, 2025
    RelatedPosts CHOPPIES – FINANCE MANAGER LIQUID INTELLIGENT TECHNOLOGIES BOTSWANA – SOLUTIONS ARCHITECT LIQUID INTELLIGENT TECHNOLOGIES BOTSWANA – HEAD OF SALES
  • BTCL enjoys strong growthJune 30, 2025
    Revenue jumps 4% to P1.49 billion Strong 2024 growth attributed to strategy Profit before Tax reaches P259 million, up 30%   BAKANG TIRO RelatedPosts BVI ships over 500 000 doses of FMD vaccines to SA Tshekedi in BPF race… Read more: BTCL enjoys strong growth
  • Motsepe, Butterfly’s last laughJune 30, 2025
    Court orders Botswana govt to apologise to Bridgette Motsepe Apology to cover Ian Khama, Isaac Kgosi, Welheminah Maswabi Botswana to settle huge legal bills, costs for publishing apologies As former President Mokgweetsi Masisi’s blunder haunts Botswana STAFF WRITERS editors@thepatriot.co.bw… Read more: Motsepe, Butterfly’s last laugh
The Patriot On Sunday

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?