Nene amends zero-rated list terms of reference
Finance Minister Nhlanhla Nene has
amended the terms of reference for an independent panel of experts to review
the list of items zero-rated for value-added tax.
The panel was appointed following a decision in February to increase VAT.
The VAT rate increased by one percentage point from 14% to 15%.
The panel is also expected to look into an effective way to mitigate the impact of the VAT increase on poor and low-income households.
The amendment comes after a call by civil society organisations to include on-food items, such as sanitary products for women, to be included on the list.
The list currently includes 19 items.
Treasury's Mpho Legote says there are also concerns around government expenditure programs.
"Just to make sure that they don't only look at the zero-rated items but also can make proposals around the expenditure programs that can be targeted to give relief to poor households."
The panel is expected to give Nene a report on its recommendations by the end of July.
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