The exorbitant cost of living crisis is a pressing issue affecting millions of households across the country. Rising prices for essential goods and services, such as food, and transport are outpacing income growth. 

Middle and upper income families are straddled with additional expenses which include private schooling, private security, and private medical aid that all are on the rise.

Lower income households face the proportionality challenge, as most spend an average of 70% of income on food and transport. This, while more than half of South Africa lives below the upper poverty line.

We are calling on the Minister of Finance to take four steps in his mid-term budget on 1 November to ease the cost of living burden on struggling households.

One, to cut the numerous transport taxes – called fuel levies – which make up a third of the total cost of a litre of petrol. This has a direct impact on lowering citizens' transport costs as well as an indirect impact on lowering the cost of food.

Two, a moratorium on any increase of VAT above the current 15% rate.

Three, to expand the list of zero-rated food items to basic goods. This is a vital intervention for poor households that spend a disproportionate amount of income on food and basic goods.

We propose increasing the list from 19 to 30 items which include white bread, cake flour, baby formula, bone-in poultry, peanut butter, soup powder, tea, coffee, sanitary products, nappies, and school uniforms.

Four, to freeze the 31.4% electricity price increase scheduled for the medium term. This is an out-of-touch and unaffordable increase for already squeezed households.