The South African government on Thursday canceled a proposed tax increase that had threatened to collapse the unity government after a pushback from various political parties.Finance Minister Enoch Godongwana announced that the government would no longer implement a 0.

National Treasury's proposed 0.5% Value-Added Tax (VAT) increase is expected to be withdrawn when Finance Minister Enoch Godongwana introduces the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill (Rates Bill) to Parliament.

South Africa’s National Treasury will scrap a proposed tax increase that threatened to rupture the nation’s coalition government. The rand rallied.