From The (New) Minister

List of zero-rated VAT items extended

Value-added tax (VAT) on white bread flour, white cake flour and sanitary pads will be zero-rated from April 1 next year, Finance Minister Tito Mboweni announced on Wednesday.

“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,” Mboweni said while tabling the medium-term budget policy statement in Parliament.

The minister’s announcement followed work done by a panel of experts, appointed by Mboweni’s predecessor, who were tasked with making recommendations to National Treasury on whether the list of zero-rated items should be expanded. The panel, in a report released in August, recommended that South Africans be exempt from paying VAT on white bread, white bread flour, cake flour, sanitary products, nappies and school uniforms.

 

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