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

The price of bread is more than R10.50 a standard loaf after increasing almost 70-percent recently.

File: The price of bread is more than R10.50 a standard loaf after increasing almost 70-percent recently.

eNCA

JOHANNESBURG - The public is being urged to submit written suggestions as part of the review of the list of items that are exempt from value-added tax (VAT).

The panel of experts will consider these submissions during the review process

Their mandate is to evaluate the existing list and find the most effective way to mitigate the impact of the April VAT increase on poor and low-income households.

EXPLAINER: How the VAT hike will hit your pocket

The move to raise VAT to 15 percent from 14 percent is expected to generate an additional R23-billion revenue in 2018/19.

The ANC said on Sunday that it wants to alleviate the impact of the increase by adding more zero-rated and tax-free items.

The tax increase was welcomed by ratings agencies, which have raised concerns about Pretoria&39;s flagging ability to boost revenue without resorting to excessive borrowing.