JOHANNESBURG - Corporate South Africa will have to readjust it's prices now that the proposed 0.5% VAT hike has been reversed.
Treasury has backtracked on its fiscal framework due to political backlash.
The DA and EFF took to the Western Cape High Court earlier this week demanding the proposed VAT hike to be scrapped.
WATCH | Discussion | VAT decision met with widespread relief
The DA finalised an out of court settlement with the ANC ahead of the announcement,
to terminate the increase.
In a joint multi-party media briefing, the ANC said the reversal of the VAT hike is in the best interests of South Africans.
Professor Peter Baur from the School of Economics at the University of Johannesburg spoke to eNCA.