Zero Rated Food Items: Renewed Calls for VAT Relief and Practical Support Measures

With rising inflation, civil society and industry groups urge government to expand the zero rated food items list under VAT. These tax-free essentials can make a meaningful difference in the affordability of everyday staples.

Credit to the original author of the article on Moneyweb, Amanda Visser’s. Amanda highlights how groups like the South African Poultry Association (SAPA) have been advocating for the inclusion of chicken products in the VAT-free list. Highlighting its role as a primary protein source for many South African households. Other proposed additions include white bread, flour, and sanitary products.

Although revenue concerns exist, expanding zero-rated food items still offers only targeted relief. Moreover, pairing this with low-risk, non-partisan support for vulnerable groups enhances effectiveness.

Ideas to Support Low-Income Households

To complement changes in VAT policy, the following suggestions can help address food insecurity. These ideas are aligned with the public sector and widely supported.

  • Strengthen the National School Nutrition Programme (NSNP): Providing regular, nutritious school meals eases family food costs and supports better health for children.

  • Municipal Support for Local Food Markets: Local governments can support pop-up markets or mobile vendors, improving access to staples without major infrastructure costs.

  • Incentives for Retail Discounts: Government-retailer partnerships could offer temporary subsidies or loyalty rewards on essentials, providing direct benefits to low-income shoppers.

  • Public Awareness Campaigns on Affordable Nutrition: Campaigns in clinics and schools can guide families to stretch food budgets using healthy, affordable options already available.

  • Data-Driven Price Monitoring: Improving access to local food price data helps households make informed choices and encourages fair pricing without new regulations.

These ideas support expanding zero rated food items, offering low-risk relief through collaboration between government, civil society, and business.

If you’ve ever wondered if zero rated items can benefit your business? The answer is a resounding yes—therefore, contact us for an appointment. We can give you the right advise in a professional manner.

Credit to the original author: Amanda Visser, a renowned journalist since 1986. She specializes in tax and has written about trade law, competition law and regulatory issues.