The South African rand was stable on Thursday after the finance ministry said it was withdrawing a contentious increase in value-added tax (VAT) that was due to take effect next month and as investors awaited clarity on the budget plans.

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

For the construction industry, this development is more than just a fiscal policy change — it could have far-reaching implications for costs, project budgets, and the broader economic environment.