President Cyril Ramaphosa has officially signed three new tax bills\u00a0into law.<\/p>\n
The tax proposals were first announced by the former minister of finance, Malusi Gigaba, in his annual National Budget Speech delivered on 21 February 2018.<\/p>\n
You can find a breakdown of each bill below.<\/p>\n
Zero-rated products\u00a0<\/strong><\/p>\n The Rates and Monetary Amounts and Amendment of Revenue Laws Act gives effect to significant tax proposals including:<\/p>\n This Act also gives effect to consequential proposals that were announced in the 2018 Medium Term Budget Policy Statement (MTBPS), such as the zero-rating of white bread flour, cake flour and sanitary pads.<\/p>\n These proposals followed the work of an independent panel of experts, established by the minister of finance, to investigate potential mechanisms of mitigating the impact of the VAT rate increase on poorer households, after a lengthy public consultation process.<\/p>\n Anti-avoidance<\/strong><\/p>\n The Taxation Laws Amendment Act deals with technical and anti-avoidance measures aimed at forcing certain taxpayers to cease using certain tax planning techniques that have an adverse effect on the amount of taxes available for collection.<\/p>\n Review of VAT rate<\/strong><\/p>\n The Tax Administration Laws Amendment Act contains tax proposals that are technical and administrative in nature.<\/p>\n It also contains a consequential amendment, proposed by the standing\u00a0committee on finance, that requires the minister of finance to evaluate the impact of the VAT rate increase on revenue collection and the poor.<\/p>\n The minister of finance will be expected to table a report in Parliament by no later than 30 June 2021.<\/p>\n\n
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