ANC proposes expansion of zero-rated VAT food basket: 'It's very encouraging'
This initiative aims to make basic food items more affordable, a welcome measure as inflation continues to impact essentials that families rely on daily.
Picture: Eyewitness News
Africa Melane interviews Sibusiso Mboto, Advocacy Coordinator at Pietermaritzburg Economic Justice and Dignity Group.
Listen below.
The ANC recently called for the expansion of the zero-rated VAT food basket.
This would provide critical relief for millions of South African households, particularly those struggling with rising living costs.
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This initiative aims to make basic food items more affordable, a welcome measure as inflation continues to impact essentials that families rely on daily.
"The basic food basket at the moment is simply not affordable."
- Sibusiso Mboto, Advocacy Coordinator – Pietermaritzburg Economic Justice and Dignity Group
The 19 basic zero-rated food items include:
- Brown bread
- Maize meal
- Mealie meal
- Lentils
- Rice
- Vegetables
- Milk
- Eggs
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Mboto highlights that in Cape Town, a food basket containing 44 essential items (including wors, fish, potatoes) for a family of four costs R5290, while in Johannesburg, the same basket is priced at R5486.
He further explains that whether an individual earns R5000 or R50 000 per month, VAT applies equally to all food items.
Mboto emphasises the importance of including all 44 items in the zero-rated VAT food basket, arguing that this situation is inherently unfair, as it imposes the same financial burden regardless of income level.
"It's a very encouraging call to be made by the ANC...We welcome it."
- Sibusiso Mboto, Advocacy Coordinator – Pietermaritzburg Economic Justice and Dignity Group
Scroll up to the audio player to listen to the interview.