Public urged to give input into VAT list

JOHANNESBURG - South Africans have until the end of the month to submit comments on the recommended list of zero-rated VAT items.

The added items include sanitary products, nappies, school uniforms, white bread, white flour and cake flour.

Finance Minister Nhlanhla Nene appointed the panel following the increase in the VAT rate from 14 to 15 percent in April.

READ: Nene expands scope of VAT panel

But some economists believe the latest approach contradicts the views of previous panels.  

The Katz Commission on tax reform and more recently the Davis Tax Committee, both suggested programmes -- like a national food stamp system -- would provide more targeted relief.

Professor Raymond Parsons from the North West University Business School says there are alternatives.