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Mitigating the impact of the VAT increase: can zero-rating help?

This report is written against the backdrop of the April 2018 increase in Value Added Tax (VAT) in South Africa from 14 to 15% - a more regressive tax with the potential to increase poverty and inequality.

This report is written against the backdrop of the April 2018 increase in Value Added Tax (VAT) in South Africa from 14 to 15% – a more regressive tax with the potential to increase poverty and inequality. The report considers ways to ameliorate the impact of the VAT increase on poor and low-income households, including assessing the current list of VAT exempt (zero-rated) items and the potential to expand that list.