Scrapping VAT on more food items and reducing import tariffs on foods consumed by low-income households is a quick way to help address hunger in SA, says the DA.
MP Dion George proposed chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee and soup powder could be zero-rated.
This, said George, would have “a negligible impact on the national fiscus, but it would mean the world of difference to those who are living in food poverty”.
VAT is 15%. Basic foodstuffs already zero-rated include pilchards, maize meal, samp, dried beans and lentils, milk powder, rice, vegetables, fruit, vegetable oil, brown bread and eggs.
Finance minister Enoch Godongwana is due to deliver the medium-term budget policy statement on October 26.
The DA urged Godongwana to intervene to relieve food prices amid the rising cost of living, and has requested he subject the proposed items to be rated at zero VAT to a review by an expert panel.
According to the Household Affordability Index compiled by the Pietermaritzburg Economic Justice & Dignity Group, the average cost of a food basket of 44 basic items has increased by R500 from a year ago. Food items tracked include maize meal, rice, cake flour, white sugar, cooking oil, potatoes and onions, frozen chicken portions, stock cubes, tea, full cream milk and powdered milk, eggs, beef, wors, tomatoes, carrots, spinach, cabbage and green pepper, tinned pilchards, bananas, apples and oranges, margarine, bread and apricot jam.
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Scrap VAT on chicken and beef, DA asks finance ministry
Image: Khaya Ngwenya
Scrapping VAT on more food items and reducing import tariffs on foods consumed by low-income households is a quick way to help address hunger in SA, says the DA.
MP Dion George proposed chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee and soup powder could be zero-rated.
This, said George, would have “a negligible impact on the national fiscus, but it would mean the world of difference to those who are living in food poverty”.
VAT is 15%. Basic foodstuffs already zero-rated include pilchards, maize meal, samp, dried beans and lentils, milk powder, rice, vegetables, fruit, vegetable oil, brown bread and eggs.
Finance minister Enoch Godongwana is due to deliver the medium-term budget policy statement on October 26.
The DA urged Godongwana to intervene to relieve food prices amid the rising cost of living, and has requested he subject the proposed items to be rated at zero VAT to a review by an expert panel.
According to the Household Affordability Index compiled by the Pietermaritzburg Economic Justice & Dignity Group, the average cost of a food basket of 44 basic items has increased by R500 from a year ago. Food items tracked include maize meal, rice, cake flour, white sugar, cooking oil, potatoes and onions, frozen chicken portions, stock cubes, tea, full cream milk and powdered milk, eggs, beef, wors, tomatoes, carrots, spinach, cabbage and green pepper, tinned pilchards, bananas, apples and oranges, margarine, bread and apricot jam.
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Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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