Non-Standard Exemptions and Zero Rates

Abstract

Chapter 10 provides a detailed review and analysis of the manifold non-standard exemptions and zero rates found around the African continent, which are most costly in terms of revenue forgone. One table lists the non-standard exemptions of unprocessed foodstuffs, agricultural inputs, medical supplies, utilities, print, fuel, and some other goods and services on a country-by-country basis. For each item, some indication is provided about the reach of each exemption or zero/lower rate. A second table does the same for the zero or positive but reduced rates on the same items. The chapter concludes with an overview of the VAT reforms in four countries—Benin, Kenya, Senegal, and Tanzania—that have eliminated most, if not all, non-standard exemptions and zero rates, a move that other African countries may wish to consider too.