South Africa on Thursday scrapped plans to raise value-added tax after a political backlash that threatened the stability of the ruling coalition government.

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

Following the announcement by Finance Minister Enoch Godongwana to abandon the proposed VAT increase, the South African rand has shown signs of recovery, gaining value against the US dollar. This decision comes amid significant opposition and legal challenges from various political factions.