Minister downplays VAT list

COMMUNICATIONS Minister Nomvula Mokonyane has downplayed the government’s attempts of expanding zero-rated items as an admission that VAT increases were not well-considered and underestimated public reaction.

Speaking at a post-cabinet briefing in Cape Town yesterday, Mokonyane described the cabinet’s initiative as an indication of a listening government.

“It is about getting feedback from South African citizens to say let’s look at other issues that are beyond the control of the most vulnerable.

“It is an indication of a listening government that has received feedback and that also appreciated that we have to go further in explaining,” she said.

Mokonyane made the comments when asked if the consideration of expanding zero-rated items was an admission that the VAT increase was not a well-considered decision and that it underestimated implications and reaction from the public.

Mokonyane said that the cabinet did not go into details on additional items to be considered for zero rating on VAT.

There was no timeline for the exercise to be handled by a team of ministers led by national Treasury.

“Once they are ready because, of course, they will be consulting with some structures of civil society, they will bring back the matters to the cabinet,” Mokonyane said.