Analyst calls for more VAT exclusions on food

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Wits Business School's Jannie Rossouw says this and containing inflation are some of the ways to stop food prices from ballooning further.

"One way for government to reduce prices is to exclude more products from VAT."

"We have basic products excluded but if more than that would help reduce prices. The problem though is that government will forfeit revenue and the South African government is currently squeezed for revenue right now," Rossouw said. "Overall the approach to follow is to be diligent in containing inflation because a successful strategy doing this also contains food price inflation."

 

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