The National Government of Unity ’s proposed plans to expand the basket of essential food items exempt from VAT have attracted mixed views.Some analysts have lauded the move as a pro-poor policy position, while others have criticised the government for assuming what is in the best interest of the poor.
Food items that do not attract value-added tax include brown bread, maize meal, rice, milk, vegetable oil and eggs, etc. “Each household’s budgets are different, each household’s priorities are different, there might be a sick older person living in the household, there might be kids who need to try and find jobs or they need income to get to town, so our view is that the state shouldn’t rush into doing anything, take that approach of the alleviation strategy and consult, ask households directly affected by poverty on a daily basis.
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