- Experts expect VAT changes in the upcoming Budget, but not an increase in the VAT rate.
- The main focus will be on improving SARS’s collection capabilities.
- There could be an increase in the zero-rating of certain products.
- Zero-rated goods are exempt from VAT and include basic food items, farming inputs, fuel levy goods, and residential rental accommodation.
- Zero-rating can offer long-term relief for households in distress.
- The government is considering adding more food items to the zero-rated list.
- President Ramaphosa and Minister Kubayi have expressed support for expanding the zero-rated list.
- Deputy Minister Masondo has cautioned against significant changes to the zero-rated list, arguing that it could lead to VAT revenue loss.
- He believes that targeted cash transfers are more effective than VAT for supporting low-income households.
- Experts are unsure which items will be added to the zero-rated list.
Source: businesstech.co.za
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.
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