Calls mount for urgent review of basket of zero-rated food items

JOHANNESBURG - As consumer budgets continue to be stretched thin, calls are mounting for an urgent review of the basket of zero-rated food items.

This after the South African Poultry Association again called for intervention to help bring prices down for basic food.

The organisation believes the government should scrap the value-added tax (VAT) charge on certain chicken products.

The basket of zero-rated food items was last reviewed in 2018, after the VAT rate was raised to 15% from 14%.

Basic food items that are currently exempt include brown bread, maize meal, samp, rice, milk, fruits and veggies, as well as tinned fish.

The poultry association has also proposed to Parliament the inclusion of individually quick-frozen chicken portions as well.

The association said this was because of their importance in the diet of millions of poor people.

It said that while food inflation might be falling, food prices remain high.

Although there’s no clear timeline, in his Opening of Parliament Address two weeks ago, President Cyril Ramaphosa announced plans to add protein-rich foods like chicken and peanut butter to the list of VAT-free foods.