Speculation is rife over the fate of finance minister Enoch Godongwana’s much-maligned 50 basis point VAT hike, which is set to take effect on May 1 after an impasse of more than three months.

Much of the intrigue is being driven by political parties that have staked their reputation on its ultimate demise. There are reports that the National Treasury and SA Revenue Service are frantically searching for a way to sidestep the VAT increase. One peculiar suggestion is that the increase will be allowed to take effect and then be withdrawn after two months with “rebates to companies and consumers” paid out by the state...

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