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Products which are Excluded from VAT in order to help the Poor in South Africa

Products which are Excluded from VAT in order to help the Poor in South Africa. Value-added tax (VAT) is a tax that is levied on most goods and services sold in South Africa. The standard rate of VAT is currently 15%, and it is one of the most important sources of revenue for the government. However, in order to help the poor and vulnerable, certain products are excluded from VAT.

List of Products which are Excluded from VAT in order to help the Poor in South Africa

The products which are excluded from Vat in order to help the poor in South Africa are: basic food, education services, medical services, water services, and transport services:

  1. Basic food items: One of the most important categories of products that are excluded from VAT in South Africa is basic food items. This includes items such as bread, milk, vegetables, fruit, and rice. These items are essential for a healthy diet, and their exclusion from VAT helps to reduce the cost of living for low-income households.
  2. Education services: Education services, including tuition fees, are also excluded from VAT in South Africa. This helps to make education more affordable for students and their families, and supports the government’s efforts to improve access to education and training.
  3. Medical services and goods: Medical services and goods, including prescription medication, medical equipment, and hospital services, are also exempt from VAT in South Africa. This ensures that access to healthcare is not limited by the cost of medical services and goods, and helps to support the health and well-being of the poor and vulnerable.
  4. Water and sanitation services: Water and sanitation services, including water supply and sanitation facilities, are exempt from VAT in South Africa. This helps to ensure that access to clean water and sanitation is not limited by cost, and helps to support public health and hygiene.
  5. Transport services for the disabled: Transport services for the disabled are also exempt from VAT in South Africa. This helps to ensure that disabled individuals have access to affordable transport services, which can be critical for their independence and mobility.

Video: Exclusive and inclusive VAT

Excluding certain products from VAT in South Africa is an important policy tool for helping the poor and vulnerable. Basic food items, education services, medical services and goods, water and sanitation services, and transport services for the disabled are among the products and services that are excluded from VAT. By reducing the cost of essential goods and services, these policies can help to improve the living standards of low-income households and support efforts to reduce poverty and inequality in South Africa.

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