After former Finance Minister Malusi Gigaba announced an increase of one percentage point in the VAT rate.
There has been a call by various organisations and NGO's including the Institute for Social Justice and Amandla. Mobi to re-look the list of items that are currently on the zero-rated list.
The Soul City Institute and Amandla. Mobi responded to a report that was released by The Davies Tax Committee on the issue.
Speaking to Gugu Mhlungu on The Afternoon Drive, Executive Director at Amandla.Mobi Koketso Moeti said the report opposes the increase of zero-rated items and instead it recommends that other mechanisms be considered such as increases to social grants or the school nutrition programme.
For us the major concern is that one in a household, we know that social grants are used not just for food but for things like transport, childcare, educational resources. The needs of people go beyond food and we know it is not enough, it does not even meet the nutritional requirements to feed an individual.— Koketso Moeti, Executive Director at Amandla.Mob
The number two in terms of the school nutrition programme, in a household, not everybody is at school, so when you have kids who are not of school going age, what is supposed to happen to them? But at the same time the need to live a dignified life doesn't only revolve around food.— Koketso Moeti, Executive Director at Amandla.Mob
Listen below to the full interview: