Nhlanhla Nene
The independent panel established to review the current list of items that are zero-rated for value-added tax (VAT) has recommended that white bread, flour, cake flour, sanitary products, school uniforms and nappies be included in the list of zero-rated items.
Finance Minister Nhlanhla Nene on Friday released the report compiled by the panel for public comment.
Nene appointed the panel after the announcement in the February Budget of the increase in the VAT rate to 15%, from 14%, effective April 1.
As part of its findings, the panel has also recommended that government expedite the provision of free sanitary products to the poor and that the zero-rating of school uniforms be done only if they can be separated from general clothing.
The report also highlights some programmes on the expenditure side which could assist poorer households, such as the strengthening of the National School Nutrition Programme and increases in the Child Support Grant and Old Age Pension.
The public has until August 31 to submit comments.
The panel’s recommendations are subject to further public comment, including comments to be made during Parliamentary hearings.
Nene will make a decision on whether to implement any of the panel’s recommendations, after taking into account the public comments, as well as input by the National Treasury and the South African Revenue Service.