The Western Cape High Court officially suspended the VAT increase in South Africa, with only a few days to spare. The Court announced that the VAT increase of half a percentage point on 1 May 2025 and the second half-a-percentage-point increase in April 2026 are suspended.

Commissioner Kieswetter expressed empathy for vendors and consumers who had already invested time and resources into preparing for the anticipated VAT change.

South Africa has abandoned plans to increase value-added tax from May 1, the finance ministry said on Thursday, after the proposed hike faced opposition from political parties and led to investor fears that the coalition government could split.