Cabinet was considering increasing the basket of zero-rated value-added tax (VAT) goods, government announced on Thursday.
“As a response to the concern raised on the Value-Added Tax (VAT) increases proposed, Cabinet is considering expanding the list of basic goods that are zero-rated on VAT,” Communications Minister Nomvula Mokonyane said in a post-Cabinet briefing.
Cabinet was responding to a backlash from opposition parties, unions and civil society groups over the first increase in VAT since 1993. South Africans are expected to pay one percentage point more VAT on goods and services at the tills come April 1.
“There is a team of ministers, led by the department of finance, that are going to be looking at the issues and additional inputs that are being made,” said Mokonyane.
While no timelines were set, Mokonyane said Cabinet would be consulting civil society structures.
“It’s an indication of a listening government that has received the feedback.”
– African News Agency (ANA)