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fiscal policy challenges

south africa vat reversal public protest impact
Business

Public Outcry and a Policy Reversed: The Scrapping of South Africa’s VAT Hike

by Aiden Abrahams
April 27, 2025

South Africa decided not to raise VAT by 0.5% after a big public outcry. People worried the extra tax would make life harder with rising prices and many without jobs. Protests, legal fights, and political pressure made the government change its mind. This choice shows how South Africans’ voices can shape important government decisions. Now, the country faces new challenges to find money without hurting its people.

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