Minister of Welfare Yitzchak Herzog (Labor) has proposed a lower Value Added Tax (VAT) for basic food products as an alternative to increasing child support payments as demanded by the Shas religious party. VAT would be canceled completely on dairy products, oil, sugar, meat and poultry, salt and rice, under his plan.
 
Lower income families would save approximately 530 shekels ($150) a month. Minister Herzog pointed out that although more wealthy families also would enjoy the cuts in VAT, lower-income families would benefit more because they spend a larger proportion of their income on food.