Finance Minister Enoch Godongwana has officially gazetted the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, which seeks to reverse the previously proposed 0.5 percentage point increase in Value-Added Tax (VAT).
This late-night move means VAT will remain at 15%—a decision that marks a significant policy shift following widespread public and industry pushback against the planned hike.
However, the bill still faces a legislative journey. It must pass through parliamentary processes, including committee reviews and voting, before it can be signed into law by the President.
In light of the reversal, Minister Godongwana now plans to explore alternative fiscal measures to close the R74-billion revenue shortfall.