South Africans call for VAT to be scrapped for more food as prices soar

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South Africans call for VAT to be scrapped for more food as prices soar
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Overall, goods have a progressive impact and a strong equity-gain ratio – poor people consume a relatively high share of zero-rated items.

”Thokozile Madonko, a research manager at the Public Economy Project at the Southern Centre for Inequality Studies at Wits University, said South Africa needed a combination of solutions to deal with the cost of foods and that extending the zero VAT-rated basket of food items was the least likely solution.

She said solutions that would help would be better wages, job creation, and increasing grants to above inflation so that people could afford the products. “People do not even care about specifics anymore especially when it comes to food. The only thing they are constantly concerned about is access and being able to afford your way through life,” she added.She agreed with Madonko and said zero-rated items could not be the end goal. “We all have different needs. Imagine having to choose whether you deserve coffee or you’re subjected to tea because you’re poor.

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