The proposed increase in Value Added Tax (VAT), originally set to take effect next month, has been officially withdrawn.
In a statement released shortly after midnight on Thursday, 24 April 2025, the Treasury confirmed that the VAT rate will remain at 15%, instead of rising to 15.5% as previously planned for 1 May 2025.
The decision follows extensive consultations with political parties and recommendations from Parliamentary committees.
The proposed 0.5 percentage point hike had sparked significant political pressure, with several parties urging Finance Minister Enoch Godongwana to reconsider.
Mounting tensions within the Government of National Unity — particularly with the DA and EFF, who had taken legal action to oppose the increase — also played a key role in the reversal.
