Food cost crisis: Is zero-rating the answer?

TechGirlOctober 10, 2022

1 minute read

food-cost-crisis:-is-zero-rating-the-answer?

Food prices are too high for some households to bear but more targeted relief might have a greater impact. Photographer: Waldo Swiegers/Bloomberg via Getty Images

Food prices have become painfully high, but — contrary to a recent demand by the Democratic Alliance (DA) — zero-rating more grocery items won’t necessarily unburden poorer households as much as more targeted relief would.

Last week, the official opposition made a call to the government to use tax policy to rein in high food prices. This is as Finance Minister Enoch Godongwana prepares to deliver his second medium-term budget policy statement later this month.