President Cyril Ramaphosa said in his Opening of Parliament Address that the Government of National Unity (GNU) will be looking at numerous ways to help South African consumers and this may include more food items exempt from Valued Added Tax (VAT).
The president said that government is looking to expand the range of food items that would be exempt from this tax.
“As the Government of National Unity, we will look to expand the basket of essential food items exempt from VAT and undertake a comprehensive review of administered prices, including the fuel price formula, to identify areas where prices can be reduced,” he said.
In South Africa, VAT is levied at a standard rate of 15%.
Ramaphosa said that asset poverty is one of the underlying causes of abject poverty, which exacerbates the high cost of living among our people.
“We must ensure that local governments properly implement the indigent policy so that the old, the infirm and the poor are able to get assistance with the payment of basic services,” he explained.
Basic foodstuffs zero-rated in South Africa
| Brown bread | Rice |
| Maize meal | Vegetables |
| Samp | Fruit |
| Mealie rice | Vegetable oil |
| Dried mealies | Milk |
| Dried beans | Cultured milk |
| Lentils | Brown wheaten meal |
| Pilchards/sardinella in tins | Eggs |
| Milk powder | Edible legumes and pulses of leguminous plants |
| Dairy powder blend |
Food basket for June
The average price of a household food basket for the month of June is R5,252.77.
This information is based on data from the Pietermaritzburg Economic Justice and Dignity Group’s (PMBEJD) Household Affordability Index, which monitors food price data from 47 supermarkets and 32 butcheries across Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba, and Springbok in the Northern Cape.
The index indicates that the average cost of a household food basket decreased between May 2024 and June 2024, from R5 330,30 to R5,252.77.
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