Government is considering adding more basic goods to the list of zero-rated foodstuffs in a bid to mitigate the impact of a value-added tax (VAT) hike on poor people.
Communications Minister Nomvula Mokonyane said yesterday the measure was discussed by cabinet at its meeting in Cape Town on Tuesday.
Former finance minister Malusi Gigaba provoked a public outrage when he announced during his Budget speech last month that VAT would be increased for the first time since 1993, from 14% to 15%, a move which has been roundly slammed by opposition parties and the governing ANC's alliance partners, the SA Communist Party and trade union federation Cosatu.
The organisations opposed to the VAT rise, which government said was expected to increase its coffers' revenue by R22-billion, have vowed to campaign for its reversal.