19 March 2018
Stats SA to ensure VAT change reflected in CPI
The VAT increase to 15% on 1 April will affect the price of many of the items in the Consumer price index (CPI) basket. Retailers and service providers may adopt different approaches and timeframes to pass this increase onto their customers. Stats SA surveys actual prices during the compilation of the CPI, irrespective of how these prices were determined.
Not all products in the CPI basket are surveyed every month. This is because prices for many products and services do not usually change every month and spreading the collection assists in managing the workload of the price collection team. A schedule of periodic collections is shown in each monthly CPI release. It has always been Stats SA’s policy to conduct additional surveys when we become aware of unscheduled price changes.
Stats SA will undertake additional surveys in April and May and make automatic adjustments to selected prices to capture as much of the impact of the VAT increase as possible.
As Stats SA obtains information from additional service providers, further products may be surveyed or adjusted.
Zero-rated and VAT-exempt items comprise 43,5% of the headline CPI basket which includes 5,5% of food expenditures. A detailed list of the products and their weight in the headline CPI is available on the Stats SA website (www.statssa.gov.za/?page_id=2528).
Weight (out of 100) of headline CPI basket items zero-rated for VAT or exempt from VAT
|Product group||Weight (%)|
|Food and non alcoholic beverages||5.46|
|Housing and utilities||18.84|
|Household contents and services||2.43|
|Miscellaneous goods and services||7.93|
For media enquiries contact:
012 310 8578
082 805 7088
For further information please contact:
|Marietjie Bennett||Patrick Kelly|
|012 310 8077||012 310 8290|
|082 888 2194||082 888 2248|