Value-Added Tax and its implication for the provision of private health services in Botswana

Abstract

This paper examines the impact of Value Added Tax on the provision of private health care in Botswana and argues that government cannot succeed in the discharge of its social obligations unless the private sector is also taken on board. The introduction of Value Added Taxation has led to an over-whelming demand for and constraint on government health facilities and a decline in the number of patients seeking private health care service. The government’s success in providing health facilities must be complimented by private sector participation and this can be achieved by providing certain incentives such as zero rating and exempting the provision of certain health care services.