Treasury expects review report on VAT zero-rated items by end of July

The independent panel, established in March, has received public submissions and held hearings on whether the list of 19 items should be expanded

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CAPE TOWN – Treasury says it expects a report from a review panel on VAT zero-rated items by the end of the month.

The Finance Department has published two draft tax laws for public comment.

It says that these bills could be amended before October to take into account any recommendations made by the panel reviewing the current list of tax-free items.

As South Africans buckle under the financial pressure of increasing fuel hikes and daily living costs following the increase of VAT to 15%, many are hoping for some relief from the Davis Tax Committee, currently reviewing the list of VAT zero-rated items.

The independent panel, established in March, has received public submissions and held hearings on whether the list of 19 items should be expanded.

Treasury says that it is expecting a report from the commission by the end of July.

The Finance Department has now published the Taxation Laws Amendment Bill and the draft Tax Administration Laws Amendment Bill for public comment.

These bills address changes to the VAT rate, personal income tax brackets, medical tax credits, estate duty and donations tax.

The bills will be presented to Parliament's finance committees before being tabled in the House.

(Edited by Leeto M Khoza)