President Cyril Ramaphosa has signed into law three 2018 tax Bills that give legislative effect to the tax proposals announced by former Finance Minister Malusi Gigaba in his yearly National Budget Speech on February 21, 2018, the National Treasury announced in a statement on Friday.

These are the Rates and Monetary Amounts and Amendment of Revenue Laws Act; the Taxation Laws Amendment Act; and the Tax Administration Laws Amendment Act.

The Rates and Monetary Amounts and Amendment of Revenue Laws Act gives effect to considerable tax proposals, such as changes in tax rates and monetary thresholds and excise duties on alcoholic beverages and tobacco products, as well as an increase in the value-added tax (VAT) rate from 14% to 15%.

Further, it gives effect to consequential proposals that were announced by Finance Minister Tito Mboweni in the 2018 Medium Term Budget Policy Statement, such as the zero-rating of white bread flour, cake flour and sanitary pads.

These proposals followed the work of the Independent Panel of Experts to investigate potential means of mitigating the impact of the VAT rate increase on poorer households, following a lengthy public consultation process.

The Taxation Laws Amendment Act deals with technical and anti-avoidance measures aimed at forcing certain taxpayers to stop using certain tax planning techniques that have an adverse effect on the amount of taxes available for collection.

The Tax Administration Laws Amendment Act contains tax proposals that are technical and administrative in nature.

Moreover, it contains a consequential amendment, proposed by the Standing Committee on Finance, that required the Finance Minister to evaluate the impact of the VAT rate increase on revenue collection and the poor. He will be expected to table a report in Parliament by no later than June 30, 2021.

A Final Response Document on the 2018 Rates and Monetary Amounts and Amendment of Revenue Laws Bill, Final Response Documents and Explanatory Memorandum to the 2018 Taxation Laws Amendment Bill (TLAB) and Memorandum on the objects of the 2018 Tax Administration Laws Amendment Bill (TALAB) have also been published.

The Final Response Documents take into account submissions and decisions made following further inputs by stakeholders and the Standing Committee on Finance during public hearings on the 2018 Rates Bill and 2018 TLAB and TALAB.