The hike was also opposed by the biggest trade union federation, the Congress of South African Trade Union (Cosatu), which is in alliance with the ANC. Even the head of the government's tax agency questioned the proposed increase, saying the last hike in 2018 did not significantly boost government revenue.

In a late-night announcement, finance minister Enoch Godongwana said the proposal to lift VAT from 15.5 per cent to 16 per cent over two years had been dropped after “extensive consultation with political parties”,