Pretoria - The DA led a protest to call on the government to cut down VAT on food commonly purchased by the poor as Minister of Finance Enoch Godongwana is set to deliver the mid-term budget statement.
The party's Gauteng leader Solly Msimanga and Shadow Minister for Finance Dion George led the demonstration that saw party members gather on Church Square, just outside the offices of the National Department of Treasury.
The demonstration was declared a fight for more affordable food for poor South Africans who are struggling to put food on the table due to the cost and need this VAT cut relief.
They mentioned food like bone-in chicken, beef, tinned beans, wheat flour, margarine, peanut butter, baby food, tea, coffee and soup powder. They said this would help poor households to stretch food budgets further and enable the purchase of more nutritious food.
The DA is leading a food VAT relief protest outside the office of the National Treasury on Church Square in Pretoria. @Our_DA #DA #Food #Hunger pic.twitter.com/LM6uoimT8l
Msimanga said they called on minister Godongwana to zero-rate bone-in chicken and other chicken categories commonly purchased by low-income households. Zero-rating bone-in chicken would cost approximately R3billion, but experts have suggested the intervention would pay for itself through improved health, work and learning outcomes.
The party has been arguing that bone-in chicken is a high-quality source of protein and by far the most popular one for low-income households, making up 14% of low-income household food budgets. They believe poor South Africans need an affordable source of protein to prevent them shifting to a less nutritious high-carb diet as their budget is squeezed; and it is also versatile and quick to cook, saving on energy costs.
Godongwana was challenged to cut import tariffs on pasta and those chicken categories purchased by very poor households, such as chicken carcasses. This will bring meaningful relief to the poorest households while having a negligible impact on the fiscus.
He was advised to cut fuel taxes to lower the cost of transport as fuel tax cuts will mean more money for household food budgets and lower food costs because the high cost of transporting food has pushed up food prices at the till.
George said the government should re-allocate the R50 million food aid for Cuba to feed hungry people at home. “It is incomprehensible that the South African government would take R50 million belonging to the people of South Africa and use it to provide food aid for Cuba when people here at home are starving.”
The DA is leading a food VAT relief protest outside the office of the National Treasury on Church Square in Pretoria. @Our_DA #DA #Food #Hunger pic.twitter.com/Atm5MIdrw9
They highlighted the new survey conducted by Debt Relief that showed that 81% of households are skipping at least one daily meal while 41% say they can’t feed their families anymore. They said at least 27% of South Africa’s children below the age of five are stunted due to malnutrition, while millions of schoolchildren are unable to concentrate and learn.
Msimanga said to talk about VAT costs may seem like something small but to the poor South African who have to made a hard decision between getting both bread and margarine it meant a lot.
Treasury chief risk officer Faith Leeuw accepted the memorandum as she was instructed to go and inform the minister that he needed to edit his mid-term budget statement and include these demands which represent the plight of the people.
Pretoria News