Frank Khiba, a legal clerk in Ministry of Justice, said yesterday that the Value-Added Tax Amendment Act, which allowed this move, had already been gazetted and signed into law by President Hifikepunye Pohamba.

He was responding a query by The Namibian why these prices had not changed despite the bill having been passed by both the National Assembly and National Council last month.

Khiba said the act would come into force on the first day of the month following the date it was published in the Government Gazette.

He said the amendment act was signed by the President on June 27 and was gazetted on July 15.

The basic food items that will become VAT zero-rated are dried beans, sunflower cooking oil, lard, bread and cake flour.

The removal of the 15 per cent VAT on basic food items is aimed at helping poor Namibians who are finding it hard to cope with skyrocketing food prices.

Government will lose revenue of about N$34 million a year because of the decision.

Since April this year, food prices have risen by about 30 per cent.

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