- The reversal of the planned VAT increase will significantly impact retailers and South Africans.
- The removal of the plan to expand zero-rated food items will affect the cost-of-living crisis.
- Previous attempts to increase VAT included measures to protect lower-income households.
- The expansion of zero-rated items was to include certain foods like canned beans and organ meats.
- The National Treasury withdrew the expansion of zero-rated items in its reversal announcement.
- Confusion arose due to a Government Gazette mentioning an amendment to the VAT Act.
- SARS Commissioner provided no clarity on zero-rating additional food items.
- Companies must adjust systems by 15 May to maintain VAT at 15%.
- Reversing changes imposes an administrative burden on companies.
- The decision impacts poorer households as no protein will be zero-rated.
- The Consumer Goods Council expressed concern over the impact on consumers.
- Expanding zero-rated items was considered but found to benefit richer households more.
Source: dailyinvestor.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
