Retailers warn VAT hike will deepen hunger crisis
Recent findings by Stats SA showed that 19.7% of households experienced moderate to severe food insecurity in 2023
19 March 2025 - 05:00
Retailers have warned that the expansion in the VAT zero-rated food basket will fall short of protecting the country’s most vulnerable households, with one in five households already facing hunger and food prices set to rise.
Last week, finance minister Enoch Godongwana announced a VAT increase of 0.5 percentage points each year over two financial years, pushing the rate to 16% by 2026/27. The first hike will take effect on May 1, with a promise to add more essential goods such as canned vegetables, dairy liquid blends and organ meats to the existing basket of 21 VAT zero-rated food items...
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