# The South African Chamber of Commerce and Industry has welcomed Finance minister Enoch Godongwana’s decision to withdraw the proposed 0.5-percentage point VAT hike. While applauding the move, SACCI CEO Alan Mukoki warns that it doesn’t solve South Africa’s worsening debt and budgetary challenges. Mukoki stresses the need for expert financial analysis across all government levels and calls for urgent collaboration beyond political divides. He maintains that a VAT increase would harm business confidence and worsen economic stagnation and unemployment.
SACCI welcomes VAT u-turn, urges focus on bigger fiscal crisis