South Africans debating the zero rating of certain products for VAT purposes must realise it isn’t a panacea for poor people and should be accompanied by other policies.
The review of South Africa’s list of zero rated VAT items faces a tricky challenge of shielding the poor while ensuring that the relief isn’t exploited.
There’s an assumption that the poor eat more unhealthy fast food because it’s relatively cheap, leading some governments to try limit their access. Two researchers tested that assumption.