At a time of enormous stress on consumers, Ebrahim Patel and Itac have added to the price of French fries
03 November 2022 - 15:53
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Donald MacKay, SA’s top trade consultant, and Georg Southey, leading importer and trader, put things in perspective in Bekezela Phakathi’s article (“Drop duties on VAT-exempt French fries, says consultant”, November 2). French fries, VAT free to assist consumers, are in short supply with insufficient processing capacity, and there is a dominant local supplier with more than 75% market share.
Despite all of this, trade, industry & competition minister Ebrahim Patel and his “impartial” trade investigation arm, the International Trade Administration Commission (Itac), which is responsible for tariff investigations, has seen fit at this time of enormous consumer difficulties to impose huge additional import duties on fries. This is nothing short of exploitation of the poorest of the poor.
The article also touches on chicken, the most popular and nutritious protein-enriched food. It used to be cheap, but never-ending duty increases and high feed costs are devastating households. Surely VAT should be removed from all poultry urgently?
Another point that requires explanation: local poultry producers continuously assert that importers are pocketing excessive profits created by chicken dumping. I have no idea if that is true, but if it is it means local manufacturers are not suffering due to poultry imports. Why then do we see one tariff investigation after another aimed at punishing importers, and in the process consumers?
David Wolpert Rivonia
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Import duties are frying the poor
At a time of enormous stress on consumers, Ebrahim Patel and Itac have added to the price of French fries
Donald MacKay, SA’s top trade consultant, and Georg Southey, leading importer and trader, put things in perspective in Bekezela Phakathi’s article (“Drop duties on VAT-exempt French fries, says consultant”, November 2). French fries, VAT free to assist consumers, are in short supply with insufficient processing capacity, and there is a dominant local supplier with more than 75% market share.
Despite all of this, trade, industry & competition minister Ebrahim Patel and his “impartial” trade investigation arm, the International Trade Administration Commission (Itac), which is responsible for tariff investigations, has seen fit at this time of enormous consumer difficulties to impose huge additional import duties on fries. This is nothing short of exploitation of the poorest of the poor.
The article also touches on chicken, the most popular and nutritious protein-enriched food. It used to be cheap, but never-ending duty increases and high feed costs are devastating households. Surely VAT should be removed from all poultry urgently?
Another point that requires explanation: local poultry producers continuously assert that importers are pocketing excessive profits created by chicken dumping. I have no idea if that is true, but if it is it means local manufacturers are not suffering due to poultry imports. Why then do we see one tariff investigation after another aimed at punishing importers, and in the process consumers?
David Wolpert
Rivonia
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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