- The government of South Africa plans to expand the zero-rated VAT food basket to help vulnerable households
- The announcement was made by Mmamoloko Kubayi during a special ANC meeting
- The goal is to alleviate inflation on basic food items and make essentials more affordable
- President Cyril Ramaphosa also highlighted the need to lower costs of basic necessities for South Africans
- Currently, the zero-rated VAT list covers 19 items, but there are calls to expand it to include more basic foods
- Deputy Finance Minister David Masondo raised concerns about the feasibility of further expanding the list due to potential VAT revenue loss
- Some stakeholders argue that direct cash transfers to low-income individuals may be more effective than VAT exemptions
- Advocacy organizations like PMBEJD have called for 44 items to be zero-rated in South Africa.
Source: businesstech.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
