29 Jul 2014

Minister of Finance and Development Planning, Mr Kenneth Matambo has told Parliament the Value Added Tax (VAT) Act was amended to zero rate for tractors acquired for farming by a person operating a farming business in 2006.

He said it was therefore true that persons who purchased tractors for ploughing were not charged VAT.

He said this was done to encourage farmers to purchase and use tractors for farming. Mr Matambo said those who purchase tractors for refuse collection, or those who purchased tractors for other uses such as road construction, werecharged VAT on such purchases.

He was responding to a question asked by Lobatse MP, Mr Nehemiah Modubule who had asked whether it was true that farmers who purchased tractors for refuse collection were charged VAT, while those who purchased them for ploughing were not charged.  ENDS