Cape Town – As South Africans grapple with higher food prices, President Cyril Ramaphosa has announced that the government will look at adding other food products to the list of items that will not attract value-added tax.
Talking at the official opening of Parliament in Cape Town yesterday, Ramaphosa said the Government of National Unity will review administered prices, including the petrol price formula.
Over the next five years, Ramaphosa has committed the Government of National Unity to three priority areas: addressing the high cost of living and reducing poverty; driving inclusive growth and job creation; and building a capable, ethical state.
‘Even at a time when many companies are making large profits, millions of South Africans are suffering as a result of rising prices,’ he said.
President Cyril Ramaphosa’s first speech to Parliament as the new leader of the Government of National Unity (GNU) last night focused on economic growth and job creation. https://t.co/VH6GXea3sz
— SABC News (@SABCNews) July 19, 2024
Zero-rated
The current list of essential food items that are zero-rated include brown bread, maize meal, samp, dried beans, lentils, pilchards, milk powder, rice, vegetables, fruit, vegetable oil, milk and eggs.
According to Trading Economics, while food inflation has been slowing month to month, the cost of food in South Africa in May 2024 rose 4.7% when compared to the same period in 2023.
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