Current Affairs: U-turn on VAT increase

Aubrey converses with Prof Daniel Meyer, School of Public Management, Governance and Public Policy at UJ, about treasury’s surprise U-turn decision to scrap the proposed VAT increase that had sparked concern across the country. What was meant to be a one percentage point rise over two years is now off the table, with the VAT rate staying at 15%. But with that decision comes a R75 billion revenue hole and plenty of political spin. What does this reversal really mean for South Africa’s fiscal health? Who's footing the bill? And what alternatives lie ahead?

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