Latest News & Analysis

Zero rated VAT items: How South Africa is going about expanding the list

South Africa is processing a new report produced by an independent panel that reviewed the current list of items exempted from Value Added Tax (VAT). The review came after VAT was increased in the 2018/19 budget, from 14% to 15%, to help the country plug a huge budget hole. On the back of concerns that the VAT increase will hurt poor people, the country’s minister of finance ordered the review to shield poor households. The Conversation Africa’s Sibonelo Radebe asked Lee-Ann Steenkamp to unpack key issues from the report.

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