Tuesday, September 26, 2023

Water usage of 500 liters to be exempted from VAT

After numerous complaints  raised by members of the public  over imposition of Value Added Tax (VAT) on water bills, the government  has acceded  to the demands that VAT  should not  be imposed  on water bills as it is a necessity.

Water Utilities Corporation (WUC), which is responsible┬á for distribution of water in the country, has issued a press release stating that following┬á complaints about consumers┬á being charged the tax water , it has┬á decided “on subsidising customers┬á for VAT on┬á water┬á bills for consumption┬á of 500 liters and below from 1 June, 2011”.

Imposition of VAT on consumption water was, besides the members of the public, condemned by academics and  members of opposition parties who said that  it will hurt the less privileged of our society  more.

But, on the other hand , the  Minister of Water Affairs and  Energy, Ponatshego Kedikilwe, supported the move saying  it was aimed at  raising money for the multi billion dams constructions that are currently being  constructed  in the northern parts of the country  to provide water in the southern parts .

A multi billion pula  dam is currently being constructed in Dikgatlhong  by Sino Hydro construction company.

The project has been dogged by problems as it  is reported to be running  behind schedule. Besides that,  its  local constructors have at one stage downed tools  on accusations that they were  not paid all  what was due to them and poor working relations in general.

Besides the construction of the dam, tendering is currently taking place for a multi-billion north-south water carrier project. When the project is finally completed,  it is hoped that  major villages in the southern part of Botswana, such as Molepolole and  Kanye, which currently depend on boreholes, will benefit from the project.


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