South Africans look for more zero-rated VAT items

CAPE TOWN - South African consumers are yet to find out which items will be added to the list of zero-rated, value-added tax (VAT) items

There have been proposals for a number of new products to be included on the list, while some experts believe a further VAT increase may be on the cards in the coming months. 

READ: Public urged to weigh in on zero-rated VAT items list

South Africans are expecting an announcement from Finance Minister Tito Mboweni when he delivers his medium-term budget on Wednesday.

The current list of zero-rated, VAT-free goods has 19 basic items on it, including maize meal, fruit and vegetables.

EXPLAINER: How the VAT hike will hit your pocket 

The list is over 20 years old so a panel appointed by Treasury has recommended that additional items such as nappies, sanitary products and white flour be added, to reduce some pressure currently faced by consumers.
Tax specialists also warn of the possibility of further tax burdens in the near future. 

Experts say it would be a mistake if Mboweni doesn’t make some sort of pronouncement on at least the status of the zero-rated list in his speech. 

Mazar's tax specialist, Mike Teuchert has more.

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