Cosatu: Further VAT exemptions may not benefit the poor
With the expert panel on the zero-rated value-added tax items having submitted its report to National Treasury, labour has questioned whether the recommendations – once implemented – will benefit the poor.
In a statement, Congress of South African Trade Unions (Cosatu) parliamentary coordinator Matthew Parks overall welcomed the additional “basic necessities” to the list of zero-rated items, but said the federation was disappointed that the VAT hike was not scrapped.
Among the items recommended to be zero-rated were white bread, sanitary pads, nappies and school uniforms.
The panel also cautioned government to ensure that benefits are not “captured” by producers.
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