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Zero-rated food

FINANCE Minister Enoch Godongwana has shot down a request to form a panel of experts to determine whether to increase the list of zero-rated food items.

This comes after the DA recently made the request and Godongwana undertook to do so when asked in the National Assembly two months ago.

The official opposition has been pushing for more food items to be zerorated from VAT and subjected to expert analysis.

The DA proposed that items should include chicken, beef, tin beef, margarine, peanuts, baby food, tea, coffee and soup powder.

However, Godongwana said he would not convene a panel for analysing an extended basket of food for zero rating because this was done in 2018 by his predecessor, Tito Mboweni.

“The panel considered a total of 66 expenditure items from public submissions, and incidentally, it also considered the items in the list contained in the letter from Dr George (DA MP Dion George), except soup powder,” he said.

He said the VAT Act currently provided for the zero-rating of 21 basic food items. | IOL