Calls are continuing for more items to be included on the list of recommended additions for VAT zero rating
The National Treasury released an independent report on Friday, recommending that white bread, flour, cake flour, sanitary products, school uniforms and nappies be zero rated.
After VAT was increased by 15 per cent in the February budget, concerns were raised about the impact of the move on the poor and low income households.
Lindelwe Nxumalo from Action Aid Africa, an NGO advocating for poverty alleviation says the poor have been affected by the VAT changes.
“The focus on just these 18 items on the lives of people who are disadvantaged can be a bit skewed because it is assumed that people are only living on these 18 items when we are actually aware that people are affected a lot more holistically. So for example, tax on transport is one of the biggest costs.”
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