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With the 0.5 percentage point VAT hike set to kick in next Thursday (May 1), retailers say they will look for ways to offer customers relief at the tills, without resorting to price-gouging.
Both the parliamentary budget office (PBO) and trade union federation Cosatu have warned there’s no provision for the National Treasury or the government to monitor zero-rated items — or to compel retailers to extend these benefits to poorer consumers. They warn that unscrupulous retailers could increase prices on goods that are zero-rated for VAT — and pocket the extra money. ..
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