The Western Cape High Court is expected to deliver judgement by no later than 29 April following an urgent application by the DA and EFF to have the 0,5% VAT increase, that is set to take effect on 1 May, declared unlawful.\n<\/p>\n\n\n\n
The parties’ respective applications were heard on Tuesday (22 April) with a full bench consisting of Western Cape Judge President Nolwazi Mabindla-Boqwana and judges Kate Savage and Andre la Grange.\n<\/p>\n\n\n\n
Both parties have argued that the increase, announced earlier this year, would place an undue burden on already struggling South African households and may have bypassed necessary parliamentary procedures.\n<\/p>\n\n\n\n
Advocate Michael Bishop, representing the DA, contended that Finance Minister Enoch Godongwana overstepped his authority by announcing the VAT increase without explicit parliamentary approval.\n<\/p>\n\n\n\n
He emphasised that “the power to tax can’t be delegated to the executive”, highlighting concerns over the lack of a formal vote on the fiscal framework report in Parliament. \u200b\n<\/p>\n\n\n\n
He said their case was about who decides to increase the VAT percentage.\n<\/p>\n\n\n\n
“It is a decision for Parliament to make,” he argued.\n<\/p>\n\n\n\n
Advocate Tembeka Ngcukaitobi, representing the EFF, described the VAT increase as “substantively unconstitutional” and criticised the process as “irrational and deceptive”. \n<\/p>\n\n\n\n
He argued that the increase would exacerbate inequality and adversely affect the poor.\u200b\n<\/p>\n\n\n\n
In response, Advocate Mahlape Sello, representing Minister Godongwana, defended the legality of the VAT hike, stating that the minister’s actions were within constitutional bounds and subject to parliamentary oversight.\n<\/p>\n\n\n\n
She warned that halting the increase would disrupt the fiscal framework and necessitate alternative measures to address the budget deficits.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Western Cape High Court is expected to deliver judgement by no later than 29 April following an urgent application by the DA and EFF to have the 0,5% VAT 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DA's federal chairperson Dr Ivan Meyer addresses the media outside the Western Cape High Court on Tuesday, 22 April. 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