Expand the VAT-Free Basket Now

Dear Editor

The Democratic Alliance (DA) is optimistic after the latest Consumer Price Index (CPI) statistics released by Stats SA, which highlight a significant drop in food inflation to a 14-year low.

Bringing about meaningful change to the lives of South Africans is the reason the DA entered the Government of National Unity (GNU), and whilst this news offers yet another glimmer of hope that progress is being made, we believe that many more reforms to the economy must still be made to grow the economy, and ease the pressure on South Africans struggling with the rising cost of living.

We repeat our call for the basket of VAT-free food items to urgently be expanded, to further alleviate pressure on households. More VAT-free basic foods would mean lower grocery prices, and a significant saving for families.

The DA is concerned that the President committed in his Opening of Parliament Address this year to give effect to this policy of zero-rating more basic foods but has not done so. This is a policy which the DA has fought for over many years – and we will continue to push for it until it is formally implemented.

Expanding the VAT-free basket to include critical items such as bone-in poultry, baby formula, and hygiene products is a vital step toward providing direct and immediate relief to millions of South Africans, and it must now be done.

We reiterate that these measures are not only necessary but achievable, and we will continue to hold the government accountable to its pledges.

The expansion of the VAT-free basket of goods would help to alleviate the financial strain on millions of households.

The DA remains committed to building a resilient economy and supporting South Africans in achieving a sustainable and dignified standard of living.

Regards

Wendy Alexander MP
DA Spokesperson on Finance