LETTER: Statutory levy on a number of foods should be removed or suspended
Dropping the levy would have a large effect on monthly food costs
With our economy falling apart and consumers battling to keep their heads above water, the media as a whole continually expresses the view that ways must be found to assist them.
While I fully support the drive led by Astral Foods and its fine CEO, supported by importers, to remove VAT from poultry, I am perplexed that the statutory levy imposed on a number of foods is completely ignored (“Zero rating chicken will benefit farmers and consumers”, January 30).
This levy affects the pricing of basic foods such as maize, bread, milk, potatoes, meat, sorghum and, I think, eggs. It should be removed, or at the very least suspended. There is also a transformation portion of about 20%.
Many recipients utilise this levy for generic promotion and development of their products, while others simply use it primarily to boost their bottom lines. Dropping the levy amounts to about 3% of cost and would have a large effect on monthly food costs.
David Wolpert
Rivonia
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