VAT panel's recommendations to cost fiscus R4bn in tax revenue

The VAT panel which Treasury set up to look into ways of softening the impact of the first in VAT hike in 25-years has recommended that the following items should be in the zero-rated items basket namely, white bread, bread flour and cake flour, sanitary products, nappies for babies and adults as well as school uniforms. These recommendations, if approved will cost the fiscus about R4 billion in tax revenue but provide tax relief of R2.8 billion to 70% of the country's poorest households. Prenesh Ramphal sat on the panel, he is Senior Manager of Tax Research & Development at Sars and he joined Business Day TV to discuss the recommendations in greater detail.