To cushion South Africans from the soaring cost of living, says President Cyril Ramaphosa, the government will expand the list of food items that are exempted from value added tax
This, he said, was necessary to further protect and support poor South Africans amid rising food prices.
Ramaphosa said that the government of national unity, which comprises the ANC, the DA, the IFP, the Patriotic Alliance and the PAC, had also resolved to review the formula used to determine the price of fuel.
Zero-rated food products include brown bread, maize meal, vegetables, milk, eggs and tinned fish.
Delivering his opening of parliament address under the auspices of the government of national unity, Ramaphosa said companies were making large profits at the expense of millions of South Africans who were suffering from rising prices.
Ramaphosa said the government would conduct a review of administrative prices, such electricity tariffs and municipal rates and taxes, with electricity having increased exponentially in price in the past few years.
