According to the January Household Affordability Index, 22 out of 44 tracked food items are taxed under VAT, significantly affecting low-income families. This taxation on essential food items results in about 49 percent of the total household food costs being subject to VAT, which totals R346.89 for the month. This amount represents a considerable burden on already-strained household budgets, as it comes off before families can make further purchases.

The report highlights a critical issue in food affordability in South Africa, particularly for low-income households that do not have the luxury of choosing items based on tax categories. They must purchase items that are affordable and necessary for their monthly needs. The continued taxation on essential goods, despite some basic items being zero-rated, indicates a gap in policy aimed at alleviating the financial strain on vulnerable families.

As VAT continues to affect nearly half of the everyday foods these families rely on, the implications extend beyond economics; it addresses fundamental issues of hunger and access to nutrition. Policymakers may need to reconsider the scope of VAT on food items to ensure that all families can afford basic nutrition without the tax burden exacerbating their financial struggles.