Business Day

Why levies on staples?

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I refer to my recent letter in which I suggested that the suspension of consumer financed levies, currently totalling about R800m per annum, could provide desperatel­y needed financial relief for our poor and hungry people (“Time to suspend agricultur­e levies,” February 17).

However one structures it, the end-user pays. Being a small shareholde­r in the food sector, I have since scrutinise­d the websites of a dozen representa­tive bodies of the agricultur­al industries involved and arrived at the following conclusion­s.

All mention the statutory levy, yet there is scant evidence of any reconcilia­tion between levy receipts and matching expenditur­e. Of course there would be audit verificati­ons, but these should be made public.

Statutory levies are indeed meaningful and appear to be effectivel­y utilised in developing and promoting exports and export markets, which create jobs and real wealth for SA. But why are SA consumers paying levies on locally produced and consumed, and even imported, staple foods?

Meat, milk, grain, potatoes, sorghum and maize come to mind. With real total unemployme­nt at a high of 42.6%, the number of starving people in SA runs into millions, yet we charge them levies on many basic foods. Whatever the benefits, surely this is not the time. Add all these levies together over a few years and the poor consumer is being placed under huge pressure while trying to survive.

Craig Dennis Wilson

Gallo Manor

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