DA wants government to add more VAT-free items as food prices skyrocket

The Democratic Alliance (DA) has called on government to expand the list of VAT-free foods to include essential items in order to provide relief to the poor as food prices continue to increase. 

This week Statistics South Africa revealed that food prices have risen by an average of 14% over the past year. The agency said this represents the largest annual increase since the 14.7% rise in March 2009. Overall, consumer inflation rose to 7.1 percent in March from 7.0 percent in February and 6.9 percent in January.

CALL FOR LIST OF VAT-FREE FOODS TO BE EXPANDED 

The DA said the revelation by StatsSA should finally prompt President Ramaphosa and his cabinet to do the right thing for the millions of children and adults in South Africa who are going hungry.

The party said food price hikes have been a massive catastrophe for poor households and are causing widespread, severe, unnecessary suffering.

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DA leader, John Steenhuisen said to bring immediate relief from hunger, the government should expand the list of VAT-free foods to include essential items like bone-in chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee, and soup powder.

PRESSURE ON THE POOR AS FOOD PRICES INCREASE

Steenhuisen said this would alleviate the burden on the poorest 50% of South Africans, who are disproportionately affected by VAT on these items.

“Government should also reduce fuel levies and increase solar tax rebates, to bring further relief to household budgets, to reduce the high cost of transporting food, and to alleviate the energy crisis which is crippling our economy. 

“These interventions are easy to implement, and they are affordable if the government couples them with proper economic reform that opens the economy for jobs and growth, and cuts corruption.”

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