The last-minute decision by the National Treasury to scrap the planned 0.5 percentage point VAT hike has left retailers and banks counting the cost after spending heavily to prepare for changes that will no longer take effect. The Consumer Goods Council of SA (CGCSA) has welcomed the withdrawal, acknowledging the relief it brings to struggling households. However, CGCSA CEO Zinhle Tyikwe noted retailers had already incurred unbudgeted financial and operational costs, first to implement the VAT increase and now to reverse it, “which they have absorbed and not pass on to consumers”.