South Africa to review VAT books

The South African Treasury has advertised a tender for a review of VAT policy and VAT relief on "merit goods" such as books and medicines. South Africa has a flat rate of 14% VAT on goods and services, and follows New Zealand’s approach of levying a lower flat rate, with few or no exceptions.
The briefing documents for the consultancy make clear the government’s concern that "a VAT system with some reduced rates and a large number of exemptions or zero-rated items could complicate the administration of the tax".
The Publishers’ Association of South Africa wants to discuss ways of making books more affordable, either by reducing VAT rates or zero-rating, or using mechanisms such as ring-fencing VAT revenues for library purchases.
The review will take place from March to June 2006.