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#MTBS 2018: Finmin Mboweni scraps VAT on sanitary pads
Finance Minister, Tito Mboweni, has announced a huge relief a lot of civil organisations have been seeking from sanitary pads. The MTBPS revealed that sanitary pads will now be zero vat rated and also will be made freely available to all girl learners at schools. Sibabalwe Gcilitshana, researchers at Equal Education joins CNBC Africa for more.
Thu, 25 Oct 2018 10:29:05 GMT
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AI Generated Summary
- The decision to zero rate sanitary pads is a significant step towards addressing economic challenges faced by low-income households, restoring dignity, and promoting equality.
- While the zero rating of sanitary pads was welcomed, concerns were raised about the exclusion of other essential items like school uniforms and the lack of financial support for individuals between 18 and 59.
- The MTBPS adjustments highlighted ongoing economic challenges in South Africa, underscoring the need for comprehensive solutions and targeted support for vulnerable populations.
In a groundbreaking move, Finance Minister Tito Mboweni announced during the recent Medium Term Budget Policy Statement (MTBPS) that sanitary pads will now be zero-rated and made freely available to all girl learners in schools. This decision has been welcomed by civil society organizations and individuals who have long advocated for the removal of VAT on these essential products. The Minister's announcement marks a significant step towards addressing the economic challenges faced by low-income households and restoring dignity to communities across South Africa.
The zero rating of sanitary pads was one of the key highlights of the budget speech, along with the zero rating of bread flour and cake flour. Minister Mboweni acknowledged the work of an independent panel of experts who recommended the mitigation of the VAT increase on lower income households. The decision to zero rate these items is estimated to result in a revenue loss of 1.2 billion rand, but it is a crucial step that specifically targets low-income households.
Sibabalwe Gcilitshana, a Parliamentary Officer and Researcher at Equal Education, joined CNBC Africa to discuss the impact of the zero rating on sanitary pads. While she expressed joy and excitement at the announcement, she also highlighted some areas of disappointment. Gcilitshana mentioned that school uniforms were not included in the zero rating list, despite being a significant expense for low-income households. She emphasized the importance of considering additional essential items, such as chicken, which is a primary protein source for many households.
The absence of targeted financial support for poor individuals between the ages of 18 and 59 was another point of concern raised by Gcilitshana. She noted that within an economy that is struggling to grow, such support could make a significant difference, especially for unemployed youth and recent graduates. The lack of increases in social spending and priorities within the MTBPS highlighted the ongoing challenges faced by vulnerable populations.
Overall, while the zero rating of sanitary pads is a positive development, there are still areas that require attention to ensure a more inclusive and supportive financial framework for all South Africans. The MTBPS adjustments reflect a continuation of existing economic challenges, underscoring the need for comprehensive solutions and targeted support for those most in need.
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