Tax & Spend
South African Court Formally Halts Proposed Hike in VAT Rate
Pedestrians at an outdoor market in St George's Mall pedestrian walkway in Cape Town, South Africa.
Photographer: Dwayne Senior/BloombergA South African court ordered that a proposed increase in the value-added tax rate be suspended, formally scrapping the measure.
The ruling on Sunday brings to an end a dispute between the two largest parties in South Africa’s coalition government over the revenue-raising measure. Finance Minister Enoch Godongwana announced on April 23 that the 0.5 percentage point increase in the VAT rate that was due to take effect on May 1 wouldn’t be implemented.