Treasury has reversed its decision to increase the Value-Added Tax (VAT) which was due to kick in on the 1st of May. Finance Minister Enoch Godongwana confirmed in a statement earlier today that the VAT rate will remain at 15%, shelving the proposed 0.5 percentage point hike that was announced during his Budget Speech last month. “The decision to forgo the increase follows extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees,” the statement read.  Thabiso Kotane speaks to Political Economist, Duma Gqubule.