Finance: Revised terms of reference for VAT zero rating review

Amendments to the terms of reference for a review of value-added tax zero-rated food items will allow the independent panel of experts concerned the ‘flexibility to make proposals with implications for the 2019/20 fiscal framework ‘and beyond’, reports Pam Saxby for Legalbrief Policy Watch. Its report is now expected to be ready by 31 July: a month later than originally scheduled.

Announcing this yesterday, a National Treasury media statement also expanded the issues on which written submissions will be received and considered to include ‘the zero-rating of non-food items’. As Legalbrief Today reported when the original terms of reference were gazetted, at the time they limited the panel to other food items. Against that backdrop, the deadline for input has been extended – if only by two days from the statement’s release. The original deadline was 24 May. While the panel’s mandate for dealing with potentially ‘more efficient’ pro-poor government expenditure programmes has been ‘broadened’, it is not clear how. Apparently informed by requests from ‘some civil society organisations’, the amended terms of reference have yet to be published.