South African Court Formally Halts Proposed Hike in VAT Rate (1)

A South African court ordered that a proposed increase in the value-added tax rate be suspended, formally scrapping the measure.

The ruling on Sunday brings to an end a dispute between the two largest parties in South Africa’s coalition government over the revenue-raising measure. Finance Minister Enoch Godongwana announced on April 23 that the 0.5 percentage point increase in the VAT rate that was due to take effect on May 1 wouldn’t be implemented.

“The court’s decision ensures that any changes to the VAT rate must be properly approved by parliament before taking effect, and sets aside the unlawful support ...