Mboweni says sanitary pads soon to be zero-rated

Finance Minister Tito Mboweni on Wednesday said that sanitary pads, among other new items, would be zero-rated from 1 April 2019.

During his Medium Term Budget Policy Speech, Mboweni said that after considerable debate and consultation, sanitary pads, bread flour and cake flour would be zero-rated.

Zero-rated means that all the input cost added along the production chain of an items will be eliminated for the consumer.

According to the minister, the revenue loss associated with zero-rating the items is estimated at R1.2bn, but, he said, zero-rating these products “restores the dignity of our people”.

Mboweni also said that there is a plan to ensure that all schools have safe and appropriate sanitation

“We will ensure that female learners in schools have access to sanitary pads. Several provinces have already taken the lead in rolling out the provision of free sanitary pads in schools.

“Funds will be added to the provincial equitable share to enable provinces to progressively further this objective.”