South Africa's VAT Hike Scrapped Amid Opposition; DA Accused of Extortion

 South Africa's Finance Minister, Enoch Godongwana, has made a significant U-turn by withdrawing the proposed 0.5% increase in Value Added Tax (VAT). The decision, which was slated to take effect on May 1, faced fierce opposition from various political parties and sparked tension within the coalition government. After reconsidering the potential impact and backlash, the government decided to scrap the VAT hike altogether. This move is seen as a major policy shift and a response to public and political pressure. The withdrawal of the VAT increase has brought relief to many South Africans who were concerned about the potential economic implications of the hike. The decision also highlights the importance of public opinion and opposition voices in shaping policy decisions.

With the reversal of the decision to increase, VAT will now remain maintained at 15%. The Finance Minister is also expected to introduce a revised version of the Appropriation Bill and Division of Revenue Bill within the next few weeks.

Kenny Kunene, Deputy President of the Patriotic Alliance, has made serious accusations against the Democratic Alliance (DA), labeling them "extortionists". Kunene claims the DA demanded the privatization of a certain port in exchange for their support on the VAT increase. He also accused the DA of hypocrisy, criticizing their claims of victory following Finance Minister Enoch Godongwana's decision to scrap the planned VAT hike.

See also: South African Blogger Musa Khawula to Stay in Custody After Bail Denied