DA calls for increase in zero-rated VAT items
The DA says it wants to hear government announce more foods being
exempt from VAT in this week's mid-term budget.
The party says the current economic conditions mean more people are struggling to feed their families.
It says foods such as beef, bone-in chicken, baby food, soup powder should be exempt.
The DA’s Shadow Finance Minister Dion George says given the current cost of living emergency, tax on fuel and an expanded zero-rated VAT food basket must be considered.
"We did have expert advice in putting that basket together and we've calculated that approximately R1.5 billion if we're going to cut that on those items. That is not an enormously large amount of money given if you look at the size of the fiscal for example, if you look at government wasting for example, that is very much affordable," he says.
George says the economy is in crisis and households are now facing the consequences.
"There is no silver bullet, and the South African economy is surrounded by endless possibilities. If we do not divert from the disastrous path that government has paved, we will never see the growth rates we are so capable of reaching and the people of South Africa will never become everything that we are capable of becoming."
On energy security, the party says government can no longer afford to keep coming to the financial rescue of Eskom.
"Uncertain energy supply coupled with an unstable political environment has drastically impacted the development of South Africa and severely limited the growth potential of our economy."
"Based on this grim energy outlook, the DA reiterates its call for the privatisation of Eskom and the opening up of the energy sector to Independent Power Producers (IPPs) as continued state ownership of the entity has not served to benefit the poor."
