South Africa is following the example of other countries by not charging VAT on certain basic foodstuffs. However, this may soon change. In the Davis tax committee’s latest report, the committee suggests that VAT be levied on milk in the future. Dr Koos Coetzee, chief economist of the MPO, is adamant that the possibility that VAT may be levied on milk, will only harm the consumer. According to the committee, concession holds more benefits to wealthier households than lower-income households. The committee believes richer households buy more foodstuffs such as fruit and milk, and thus should be taxed. Dr Coetzee differs: “Milk is a basic foodstuff with a high nutritional value at a relatively low price.” For more information, click HERE
Published on Monday, 3rd August 2015 - 09:37
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