DA Wants Finance Minister Godongwana to Scrap VAT on Basic Food Items Ahead of Medium Budget Speech

• Food prices in SA have soared to a level where low- and middle-income households are struggling to get food on the table
• SA's main opposition party has proposed that the finance ministry jettison VAT on 10 essential food items to alleviate hunger in the country
• Finance minister Enoch Godongwana claimed that zero rating basic food items would be ineffective in addressing the high cost of food

JOHANNESBURG - The Democratic Alliance (DA) wants the finance ministry to scrap VAT on essential food items and reduce import tariffs to address the food poverty experienced by low-income households.

DA MP Dion George proposed that a zero-vat status should be given to essential food items like chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee, and soup powder.

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George released a statement claiming that soaring food prices are the boot on the neck of low and middle-income households in South Africa as more consumers are struggling to put enough food on the table.

According to TimeLIVE, the Household Affordability Index reports that the average cost of a food basket containing 44 basic items has increased by R500 in the last year.

George claimed that a zero-vat status on staple food items would have an insignificant effect on the national fiscus but would go a long way to alleviating the pressure on households experiencing food poverty.

The opposition party claims that upon hearing the DA's proposal to increase the number of zero-rated food items, Finance Minister Enoch Godongwana cited a study from 2018 that claimed that increasing the zero-rated food basket would be inefficient and only benefit wealthier consumers.

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George accused the African National Congress of lacking the political will to confront the inflation emergency and driving more households into food poverty by taxing almost everything in the country.

Gondeongwana conceded that he would subject the DA's proposal to an expert panel for analysis if requested. In response, George wrote to the finance minister to formally request that an expert panel investigate the DA's proposal to have the proposed essential food items zero-rated.

South Africans weigh in on the DA's proposal to have VAT scrapped on essential food items

Some Social media users think the DA's proposal is a good initiative, while others commented that less tax means corrupt officials will have less to steal.

Here are some comments:

@nelsonkatleho commented:

"DA doing more for the poor than the ANC"

@MnqundO added

"Mxm more preservatives and chemicals, voetsek let them advocate for land so that we can grow our own food"

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@firepower66 asked

"But how will the ANC eat then?"

@prvtinstigator suggested

"How about zero-rating cheese and triple-rating Gucci shoes?"

@saltychi claimed

"This is a wonderful and practical initiative. Good going, DA, hopefully, this will start a trend with the other parties to give help to households."

@Alipor_Sheikh joked:

"The cadres need to eat, no tax, no eating, I mean stealing."

Coalition parties ousted ANC mayor of Nelson Mandela Bay in motion of no confidence, DA mayor takes over

Briefly News previously reported that a motion of no confidence on Wednesday, 21 September, resulted in the removal of the ANC executive mayor in Nelson Mandela Bay.

Eugene Johnson was elected mayor in November 2021 by a one-vote margin and has been subject to several attempts to remove her since then.

According to News24, the Freedom Front Plus (FF+) and African Christian Democratic Party (ACDP) lobbied other parties to endorse a motion of no confidence in Johnson in December 2021 to no avail.

Source: Briefly News