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Plan to scrap VAT concessions for farmers

Author: Amanda Visser

Proposals by the Treasury to scrap the value added tax (VAT) concession of a zero rating on goods and services bought by farmers for production purposes will raise input costs 14%.

The sector spends R100bn a year on goods such as fodder‚ stock and fertiliser and if the VAT concession is scrapped‚ input costs could rise by R14bn a year.

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