Minister announces the terms of reference and details of the Independent Panel of Experts to consider and review the current list of vat zero rated items
The Minister of Finance hereby provides further details on his announcement of 29 March 2018 to appoint an independent panel of experts, under the Davis Tax Committee, to review the current list of VAT zero-rated items. The details include the full list of members of the Panel and its terms of reference.
The increase in the Value-Added Tax (VAT) rate from 14 to 15 per cent took effect on 01 April 2018, as announced in the February 2018 Budget. The Panel’s mandate is to review the current list of VAT-zero rated items and consider the most effective way to mitigate the impact of the increase in the VAT rate on poor and low-income households. This review process should be done within the confines of the current Fiscal Framework as proposed in the 2018 Budget, including for revenue and expenditure.
The review will consider expanding the list of basic items that are VAT zero-rated, and consider how specific expenditure programmes can be improved to better target poor and low-income households. Whilst the focus of the Panel will be on food items to be included for zero-rating, it will also identify any other items that should be considered to achieve the policy intention of providing relief to poor and low-income households.
The appointment of the panel also gives effect to the recommendations made by the Standing Committee and the Select Committee on Finance and the statement of Cabinet of 28 February 2018.
The panel will be chaired by Professor Ingrid Woolard. The other members are: Mr Ayabonga Cawe, Professor Ada Jansen, Dr Thabi Leoka, Dr Neva Makgetla, Ms Lynn Moeng, Mr Cecil Morden, Mr Prenesh Ramphal and Professor Imraan Valodia.
The terms of reference and brief biographies of the panel members are published on the National Treasury website.
Enquiries: Communications Unit Email: media@treasury.gov.za Tel: (012) 315 5944
@TreasuryRSA
The panel will take public comments, convene hearings, and will engage with different stakeholders from civil society organisations, organised labour and business, and all other interested parties. The Panel will publish further details on its public consultation process.
The panel is expected to deliver an initial report with recommendations to the Davis Tax Committee and the Minister by 30 June 2018.
Enquiries:
Communications Unit
E-mail: media@treasury.gov.za
Tel: 012 315 5944
