South Africa on Thursday scrapped plans to raise value-added tax after a political backlash that threatened the stability of the ruling coalition government. The proposal to raise VAT by 1 percentage point over two years,

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

Spread This News BBC Enoch Godongwana’s decision came after the second-biggest party, the Democratic Alliance (DA), threatened to quit the government, warning a VAT hike would hurt the poor the most.