Panel recommends that sanitary towels be zero-rated
An independent panel tasked with reviewing the list of zero-rated value-added tax items has recommended that sanitary towels be included on the list.
The panel which was appointed by the Finance Minister Nhlanhla Nene in February after VAT was raided to 15% from 14% in April.
The panel has recommended that white bread, bread flour and cake flour, sanitary products, school uniforms, children and adult nappies be added onto the list.
This means that consumers could be paying 15% less for these products in future.
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Chief economist at Econometrix Azar Jammine says this decision from government shows some willingness to provide a little leeway for the poor sections of society.
"Clearly there has been pressure on treasury to zero rate some essential goods either than those that have been zero rated.
"The quantum of goods that have been identified is fairly well defined and is limited to the extent that it should not entail an unduly huge loss of revenue from the fiscus," he says.
However Jarmine does believe that treasury could try and make up the loss in other areas like the fuel levy or additional vat in future.
The public can can submit its comments in regards to the new list additions to [email protected] by 31 August 2018.
