Finance Minister Nhlanhla Nene has appointed a panel to review the current list of VAT zero-rated products.
“The panel’s mandate is to consider the most effective way to mitigate the impact of the increase in the VAT rate on poor and low-income households. This review process should be done within the confines of the current fiscal framework, as proposed in the 2018 Budget, including for revenue and expenditure,” said Treasury.
The nine-member panel is expected to deliver an initial report with recommendations to the Davis Tax Committee and the Minister by 30 June 2018.
The review will consider expanding the list of 19 basic food items that are zero-rated.
