zero vat

The National Treasury has asked for your comment or suggestion on the report by the Independent Panel on the review of the current list of items that are zero-rated for VAT.

The recently released report also recommends strengthening the National School Nutrition Programme and increasing the Child Support Grant and Old Age Pension.

Should you be unsure, please read the live comments, summary, media or resource documents below the form.  Closing date is 31 August 2018.

10839 active citizens on this campaign, so far.

Have your say now.

Do you agree with the recommended zero-rated VAT items? (see summary below)
Yes I doNo I do notNot fully

Do you agree with the recommended alternatives? (see summary below)
Yes I doNo I do notNot fully

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LIVE COMMENT FEED

Displaying newest 5 comments.

Simanga
Yes I do
Yes I do
I think some of those Items should not be taxed and school nutrition it's the best thing ever happen to young students they should increase it and grants as well
Tiisetso
Yes I do
Not fully
an increase in an over financially burdened society is going to increase the level of poverty, unemployment and inequity. These are the tree challenges that must be attended to and not put paraffin to fire. society is overstretched and this 15% increase is final blow us. Although Treasury is trying to relieve or exempt certain item from this ridiculous vat increase, I don't believe its a way to address the massive corruption and illicit flow of finance out of the country. all we have to do is to work on retrieving money stolen from our public purse.
Elvie
Yes I do
Yes I do
all basics products should be zero-rated and not only food. if it is a basic that has to be used it should be zero rated. Some additional products should also be zero rater..like toilet paper (but obviously not luxury toilet paper.
Renette
Not fully
Not fully
All fresh fruit and veggies, meat except possessed meat, milk and bread.

Force schools to only sell healthy foods in the cafeteria, not all fried and sweets. No health muffins, fruit, health bars, etc are available at any schools tuck shop. How can we teach our kids to eat healthy, if the schools do not support this.
Nande
Not fully
Not fully
The department of health has been promoting healthy eating habits as we are a largely obese nation. Fruits and vegetables that are grown locally should be zero-rated. Staples like maize meal, rice, samp, etc. should be zero-rated. Sanitary towels should be added to the list and government should have initiaves like the condoms in every public & private bathroom. These should be donated to schools. Certain types of baby diapers and baby milk should be zero-rated as we cannot afford to buy these things as one packet does not even last a month.

SUMMARY

After VAT increased to 15%, concern about the impact on poor households led the Minister of Finance to appoint a panel of experts to evaluate the current list of zero-VAT items and consider including extra items to lessen the impact of the VAT increase on the poor.

The recently released report also recommended strengthening the National School Nutrition Programme and increasing the Child Support Grant and Old Age Pension.

The report recommended adding these items for zero-VAT rating:

  • Sanitary products
  • White bread, bread flour and cake flour
  • School uniforms
  • Nappies (including cloth and adult nappies)

The report suggests possible alternatives to VAT zero rating including:

  • Lower positive VAT rates on some items
  • Increases in all the monthly social grants, including the old age social pension
  • Food vouchers – where cash grants might not be feasible or practical
  • Upscaling the various feeding schemes (e.g. the National Schools Feeding Scheme, including pre-school (ECD))
  • The provision of free sanitary pads to girls and poor women.

Consider the following;

  • Will the recommendations significantly benefit poor households, or could such benefit be achieved through other means, for example, through government expenditure programmes?
  • Have all significant aspects of the revised terms of reference dated 29 May 2018 been explored in the report?
  • Are the panel’s recommendations consistent with other relevant government policy objectives (e.g. that the food items recommended for zero-rating are consistent with the Department of Health’s policy on nutrition)?
  • Are the recommendations consistent with the fiscal framework adopted by Parliament?

MEDIA

DOWNLOAD DOCUMENTS

Download the Expert Panel’s Report of Recommendations made to the Minister of Finance

Download Treasury’s media statement

zero-vat-items

Important to note; this is not a petition but is a step in an essential Participative Democracy process protected under the SA Constitution. Your comment is immediately sent as a unique email to the designated government representative and must, by law, be individually acknowledged and considered. Had this been a petition, all comments would be seen as a single submission. This process forms a solid foundation for a legal case should the necessity arise.

By using this service you ensure an accurate record is held by civil society (on our encrypted database) so government cannot dispute facts or figures. 

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