JOHANNESBURG - The VAT conundrum is a self-created crisis that Treasury should have avoided, according to Ben Cronin, who specialises in tax and commercial law at the University of Cape Town.
Treasury wanted to increase VAT by 0.5 percentage points, but the Western Cape High Court has suspended the proposed hike.
The VAT rate was scheduled to rise to 15.5% on 1 May, but now remains at 15%.
The proposed 0.5 percentage points has seen political parties putting pressure on Finance Minister Enoch Godongwana to reverse the decision, with DA and the EFF challenging the proposed VAT increase in court.