Government's strategic VAT adjustments; what they mean

Source: 123RF.

As it stands, the list of zero-rated VAT items stands at 19, and includes such staples as brown bread, maize meal, milk, rice, vegetables, and eggs. The recommendation is to expand the list to 44 zero-rated VAT items.

Advocacy group, Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) has advocated for this stance, based on data that shows a food basket for a family of four - containing these 44 items - costs approximately R5,290 in Cape Town and R5,486 in Johannesburg.

The food cost, it says, is out of reach of low-income families.

Mmamoloko Kubayi, head of the ANC's economic transformation subcommittee, said this was part of the party's aim to put a stop to inflation on basic food items, and reiterated it was essential to creating stability in South Africa.

"These efforts are a testament to our commitment to making essentials affordable and accessible," Kubayi said.

This, she said, will reinforce public trust in South Africa's future.

The last time the zero-rated list was expanded upon (by six food items) was in 2018.