South Africa withdraws planned VAT hike after political pushback

South Africa Cancels Planned VAT Hike After Political Pressure

South Africa has decided to withdraw its planned VAT hike. This decision comes after significant political pushback.

The government initially proposed the increase to boost revenue. However, many politicians and citizens opposed it. They argued that it would burden low-income families.

Finance Minister Enoch Godongwana announced the cancellation. He stated that the government listened to public concerns.

This move aims to maintain economic stability and support vulnerable communities. The government will explore other ways to increase revenue instead.