After weeks of coalition disagreement, Finance Minister Enoch Godongwana announced that the planned VAT increase would be withdrawn. The ANC described the resolution as the result of consultation among parties and defended the process as democratic consensus-building. DA and other parties also claimed the outcome as a policy victory. The episode demonstrates that the ANC’s position as the largest party no longer guaranteed control of fiscal policy; households and parties contested the regressive effects of raising consumption taxes.
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What happened to the proposed VAT increase in April 2025?
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Explanation
The Minister of Finance announced withdrawal of the proposed increase.
The proposed VAT increase was withdrawn in April 2025.
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Explanation
The finance minister announced the withdrawal after negotiations.