- Despite VAT exemption, some zero-rated food prices increased by 4.1% over the past year.
- The Household Affordability Index by PMBEJD tracks prices of 44 basic foods from various supermarkets and butcheries across South Africa.
- Zero-rated foods in the household food basket increased by R113.66 from R2,775.45 to R2,889.11.
- Basic food items like brown bread, rice, and vegetables are zero-rated for VAT to make them more affordable.
- Increases in specific food prices include maize meal, samp, cooking oil, pilchards, and brown bread.
- Foods subject to VAT increased by R76.70 from R2,477.32 to R2,554.02.
- VAT on the total household food basket was R333.13 in June, making up 6.1% of the basket.
- The cost of a basic nutritional food basket for a family of seven increased by 3.9% from R6,403.10 to R6,652.25.
- Low-income families may underspend on basic nutritional food by at least 18%.
- Of the 44 foods tracked, 19 increased in price, with onions and beef seeing significant increases.
Source: timeslive.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
