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19 food items you will not pay VAT for

| Economic factors

As of April 1, 2018, value added tax (VAT) will increase to 15% which will add growing pressure to household’s.

However, Finance Minister Malusi Gigaba said that despite the necessary increase in VAT, 19 basic food items will be zero-rated VAT. The Minister acknowledged that the increase in VAT is not desirable, given the tough economic climate and the implications it will have on lower end households. 

“Increasing taxes in a low-growth context, when many South Africans are struggling to make ends meet, is not desirable,” Gigaba said in his 2018 Budget Speech. Meanwhile, South Africa’s banking association said on February 21 that the budget was a fair one and proved Gigaba’s commitment to restore fiscal responsibility. 

Take a look at 19 of the basic food items that will receive zero-rated tax:

 

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