South Africa scraps VAT increase in dramatic U-turn after coalition rift

South Africa slashes planned VAT hike after pushback from Democratic Alliance

South African finance minister Enoch Godongwana has dropped a planned VAT increase that would have seen value-added tax increase by one percentage point over two years after the Democratic Alliance (DA) threatened to quit the coalition.

Joint Statement: Rejection of the VAT Hike Should Not Deepen Budget Cuts - AIDC | Alternative Information & Development Centre

The National Treasury has finally withdrawn the proposed 1% point VAT hike following weeks of pressure from across the political spectrum. We welcome this, noting that VAT is a regressive tax and would have harmed the working class despite proposed measures to cushion the blow. However, we reject the intention to reintroduce spending cuts in response. Instead, the AIDC calls for the implementation of progressive tax and revenue-raising options a…

South Africa scraps VAT increase in dramatic U-turn after coalition rift

Finance minister forced into climbdown on tax rise after bitter fight with governing partner

South Africa reverses VAT tax hike that threatened coalition government

The finance minister has warned that spending cuts or a rise in other taxes could follow.

South African Bonds Gain as Investors Welcome Tax-Hike U-Turn

South African government bonds extended gains on Thursday after the National Treasury scrapped plans for a tax increase that threatened to rupture the nation’s coalition government.

South Africa scraps proposed tax increase after pushback from coalition partners and opposition

The South African government has canceled a proposed tax increase that has threatened to collapse the unity government after a pushback from various political parties.