The Permanent Secretary of Finance, Calle Schlettwein issued the following press release:
Schedule III of the VAT Act has been amended to make provision that the following vasic foodstuff should be supplied at a zero rate, namely:
1. Fresh and dried beans (excluding canned and frozen beans)
2. Sunflower cooking oil
3. Fried out or processed animal fat used for the preparation of food
4. Bread; and
5. Bread and cake flour (sifted and unsifted)
Please note that the items, as listed above, will not qualify to be zero rated when furnished or served as a meal, or as cooked or prepared food.
The amendment has been published in Government Gazette number 4084 dated 15 July 2008, which will be effective as from 1 August 2008.
Businesses are therefore requested to adjust the VAT rate as from 1 August 2008 to ensure that the zero rating of the basic foodstuff will benefit especially the poor in this country.
Please note that “bread” means all types of bread baked and sold as fresh bread and “bread and cake flour” means flour made from wheat.