Sanitary pads, white bread flour to be added to VAT free items
Northglen News - Oct 29th 2018, 08:15
FINANCE Minister Tito Mboweni says government proposes that come April 2019, three items, including sanitary pads, will be added to the zero-rated list.
Earlier this year, government increased value-added tax (VAT) from 14 per cent to 15 per cent. An independent panel of experts to review the list of 19 zero-rated food products was set up to consider how best government could mitigate the impact of the VAT increase on poor and indigent households.
The panel of experts has since released the report and recommended that six items be added onto the list of zero-rated items.
“An independent panel of experts investigated options to mitigate the impact of the VAT increase on lower income households. My thanks to the panel for their excellent work. I would also like to thank the 30 000 individuals and NGOs who provided comments on the panel’s recommendations,” Mboweni said.
Mboweni said from 1 April 2019, sanitary pads, bread flour and cake flour will be zero-rated.
“The revenue loss associated with zero-rating these items is estimated at R1.2 billion. However, zero-rating these products targets low-income households and restores the dignity of our people,” he said.
The announcement will come as good news to several women’s advocacy groups, who have for months taken their calls for removing VAT from sanitary products, with some saying it was unfair to impose a tax on a product that women need for biological reasons.Northglen News
Contraction in economy looms in the first quarter
17/05/2019 - 09:16
Weak performances in the retail, mining and manufacturing sectors, which bore the brunt of the most severe power cuts the country has experienced yet, indicates that the economy contracted in the first quarter of the year.
Retail sector barely budged in March
16/05/2019 - 09:54
Consumers were under pressure in March with a 74c/l hike in the petrol price and slightly higher inflation.
Load-shedding knocks mining and manufacturing in the first quarter
13/05/2019 - 09:36
Despite a better performance in March, both sectors recorded contractions in the first quarter of the year - with production severely constrained by load-shedding.
SA retailers seek post-election boost as belts tighten
10/05/2019 - 11:02
Londani Nemaguvhuni’s Sunday trip to the Mall of Africa north of Johannesburg is a finely balanced operation. The 29-year-old has to provide for his young son but also needs to cut costs.
How e-tailers can survive the slow economy
10/05/2019 - 10:18
Talk of a looming global recession continues to impact emerging markets. And, as South Africa continues its longest downward cycle in many decades, local business owners are actively looking for ways to shore up ahead of future uncertainty.