DA wants government to cut food costs, scrap VAT on certain items

‘Across the globe governments are taking bold action to help struggling people through this cost-of-living emergency, yet in South Africa the ANC Government remains sitting on its hands,’ said the DA.

Sep 27, 2022 - 19:24
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DA wants government to cut food costs, scrap VAT on certain items

The Democratic Alliance (DA) is calling for the public to comment on its campaign that seeks to scrap Value Added Tax (VAT) on essential food items as “South Africa is in the throes of a full-blown hunger crisis.”

DA WANTS MORE FOOD ITEMS ADDED TO VAT EXEMPTION LIST

Dion George, the opposition party’s Shadow Minister of Finance, wants his counterpart in cabinet, Enoch Godongwana, to announce food price relief measures in his Medium Term Budget in October.

The party wants Godongwana to scrap VAT on the food items most commonly purchased by indigent households by reviewing and expanding the zero-rated baskets. It launched a petition, which allows the public to comment on and support the proposal.

READ: Police not told sex case against Godongwana is dropped – report

Comments on the proposal close on 20 October and Godongwana’s budget is expected on 26 October.

“Across the globe governments are taking bold action to help struggling people through this cost-of-living emergency, yet in South Africa the ANC Government remains sitting on its hands.

“We call on South Africans to support and comment on the scrapping of VAT on more essential foods so that your voices are heard, and so that you show the Finance Minister that he must act,” said George.

READ: Mashaba: More DA members to join ActionSA ahead of elections

Some of the other demands listed by the DA includes, slashing fuel and levies to decrease the cost of transporting food; using the R50 million Cuban food aid at home and reducing import tariffs on foods consumed by indigent households.

The party wants the Minister of Finance to assemble an expert panel to advise him on the food items that he should add to the zero-rated list for VAT in October.

READ: Prices of average household food basket continue to skyrocket

Food prices groceries lockdown
19 basic foodstuffs are exempt from Value Added Tax (VAT) in South Africa. Image: Pixabay.

The following basic foodstuffs are currently zero-rated for VAT in South Africa:

  • Brown bread.
  • Maize meal.
  • Samp.
  • Mealie rice.
  • Dried mealies.
  • Dried beans.
  • Lentils.
  • Pilchards/sardinella in tins.
  • Milk powder.
  • Dairy powder blend.
  • Rice.
  • Vegetables.
  • Fruit.
  • Vegetable oil.
  • Milk.
  • Cultured milk.
  • Brown wheaten meal.
  • Eggs.
  • Edible legumes and pulses of leguminous plants.

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