NATIONAL Foods Holdings says all-in monthly operating costs increased by six percent following the value-added-tax (VAT) changes on basic foods at the start of the year.
Government changed the VAT status of many basic foods, including maize meal, flour, stock feed and salt from “zero-rated” to “exempt.”
This change meant that although VAT could not be charged when selling the product, manufacturers could no longer claim the VAT input costs incurred in the production of these goods.