Enoch Godongwana
Source: Africa Publicity
The Finance Minister of South Africa, Enoch Godongwana, has reversed the 0.5 percentage point in South Africa’s Value Added Tax (VAT) increase which he announced during the passing of the budget in March this year.
The reversal in the VAT was necessitated by protests by some organizations and two opposition parties namely Democratic Alliance (DA) and the Economic Freedom Fighters (EFF), who were against the increase.
The VAT increase had been 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 case had been 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 argued that the tax hike would intensify South Africa’s cost-of-living crisis.
In a statement, the National Treasury of South Africa said 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.
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