ANALYSIS: VAT hike reversal fallout leaves SA on edge

By Thebe Mabanga

And thus, the recrimination, managing a fallout, political point scoring and throwing shade began.

From the stairs of the Western Cape High Court to a media briefing in Sandton, and more voices shouting from the sidelines, the blurred lines between who is inside the Government of National Unity and who is out, vanished completely.  

And with the dust far from settled, South Africans are left none the wiser as to what happens next.

In a dramatic late announcement on Wednesday, the National Treasury said that Finance Minister Enoch Godongwana would introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill, commonly known as the Rates Bill, which proposed to maintain VAT at 15%.

“The decision to forgo the increase follows extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees. By not increasing VAT, estimated revenue will fall