- The VAT increase of 1% is set to affect a variety of services and goods in South Africa
- The government believes that the poorest will not be negatively affected by the increase, as there are zero-rated or VAT free food products available to them
- It remains to be seen how the VAT increase will affect South Africans' budgets
One percent may not sound like a lot, but when you're living on a budget, any increase, no matter how small, is felt. If you plan your menu carefully though, and purchase VAT free food items, you could avoid paying the extra tax.
The announcement that VAT would increase from 14% to 15% has been met with horror by many South Africans who are already struggling to put food on the table.
Government, however, believes that there are adequate food sources available that are zero-rated, meaning that they don't have any VAT applied to them.
This should mean that the poorest South Africans will not be affected by the increase in VAT, at least, not when it comes to food.
Briefly.co.za provides a list of the 19 food items that aren't VAT taxed:
- Maize Meal
- Brown Bread
- Dried Beans
- Vegetable Oil
- Mealie Rice
- Edible legumes and pulses of leguminous plants
- Pilchards in tins
- Dried Mealies
- Cultured Milk
- Dairy Powder Blend
- Milk Powder
- Brown Wheaten Meal
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