# Finance minister Enoch Godongwana has decided to withdraw the decision to hike the value-added tax rate by 0.5 percentage points. In a statement, the minister says this decision follows extensive consultations with political parties and careful consideration of the recommendations of the parliamentary committees. Godongwana says that by not increasing VAT, estimated revenue will fall short by around 75-billion-rand over the medium term. He adds that Parliament will be requested to adjust expenditure to ensure that the loss of revenue does not harm South Africa’s fiscal sustainability.
Minister Godongwana has reversed the proposed VAT increase