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New VAT-free foods: Most canned veg still excluded, but oxtail, tongue may be in

The South African Revenue Service (SARS) has announced that from April 1, 2025, certain foods will be exempt from Value Added Tax (VAT) to help alleviate the cost of living for low-income households. However, the list of VAT-exempt foods does not include most canned vegetables, which has sparked some controversy. Notably, items like brown bread, rice, and lentils are included in the exemption, but surprisingly, luxury items like oxtail and tongue might also qualify for the VAT exemption. This decision has led to debates about the criteria used for selecting which foods qualify for the exemption, with critics arguing that the inclusion of such expensive meats undermines the initiative's aim to support the economically disadvantaged. The exemption list aims to cover staple foods that are essential for basic nutrition, but the exclusion of common canned vegetables has raised concerns about the policy's effectiveness in addressing food affordability for the poorest segments of the population.

Read the Full News24 Article at:
[ https://www.news24.com/fin24/economy/new-vat-free-foods-most-canned-veg-still-excluded-but-oxtail-tongue-may-be-in-20250314 ]