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[File photo] A worker counts money
Finance Minister Enoch Godongwana has reversed the 0.5 percentage point VAT increase he announced during the passing of the budget in March.
The VAT increase was later approved by the National Assembly with a slight margin with recommendations from ActionSA which was against the increase, saying that National Treasury must be given 30 days to come up with alternatives to tax hikes.
The matter was also taken to the Western Cape High Court by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF), who are some of the parties that were against the increase.
The DA argues that the tax hike would intensify South Africa’s cost-of-living crisis.
In a statement, National Treasury says Godongwana will shortly introduce the Rates and Monetary Amounts and the Amendment Revenue Laws Bill which proposes to maintain VAT at 15% from May 1.
VIDEO | DA, EFF challenge May VAT increase in court:
