The proposal to expand the basket of VAT-free foods, aimed at providing relief to distressed households, was included in a report adopted after public hearings on the medium-term budget policy statement tabled earlier in November, Business Day reported.
The government has opposed expanding the basket of goods free of the country’s 15% VAT. Business Day said this position was repeated by finance minister Enoch Godongwana in a response to the opposition Democratic Alliance (DA) which has called for more zero-rated foods.
At present, food items that do not attract VAT include brown bread, maize meal, rice, vegetables, milk, vegetable oils and eggs.
DA finance spokesman Dion George wants the basket to include bone-in chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee and soup powder.
FairPlay has called for ‘VAT-free chicken’ since 2018, when the VAT rate was increased from 14% to 15%. A panel formed to investigate exempting additional products from VAT could not reach a consensus on chicken, although there was support for that proposal.
There is speculation that a cash-strapped government may increase VAT again next year.
The proposal to expand the basket of VAT-free foods, aimed at providing relief to distressed households, was included in a report adopted after public hearings on the medium-term budget policy statement tabled earlier in November, Business Day reported.
The government has opposed expanding the basket of goods free of the country’s 15% VAT. Business Day said this position was repeated by finance minister Enoch Godongwana in a response to the opposition Democratic Alliance (DA) which has called for more zero-rated foods.
At present, food items that do not attract VAT include brown bread, maize meal, rice, vegetables, milk, vegetable oils and eggs.
DA finance spokesman Dion George wants the basket to include bone-in chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee and soup powder.
FairPlay has called for ‘VAT-free chicken’ since 2018, when the VAT rate was increased from 14% to 15%. A panel formed to investigate exempting additional products from VAT could not reach a consensus on chicken, although there was support for that proposal.
There is speculation that a cash-strapped government may increase VAT again next year.
