- Legal battle over finance minister’s power to change VAT through announcements
- Democratic Alliance and EFF challenged the March 2025 budget in court
- First part of the case led to budget withdrawal; second part ongoing
- DA and EFF challenge constitutionality of Section 7(4) of the VAT Act
- Section allows Finance Minister to adjust VAT with immediate effect
- DA and EFF argue it bypasses parliamentary processes
- Finance Minister claims it is a temporary measure, subject to parliamentary approval
- Out-of-court settlement reached on VAT hike; challenge to VAT Act continues
- Legal experts say ruling will have wider implications
- Success in court could affect finance minister’s ability to fund budget through tax increases
- Future tax changes in South Africa might be affected
- Finance Minister may face delayed budget processes
- Court ruling in DA and EFF’s favor could shift major revenue measures to MTBPS
- Tax measures may be delayed to allow for proper processes
- February Budget seen as main revenue budget; MTBPS updates financials and plans
- MTBPS usually does not include tax changes but indicates financial direction
Source: businesstech.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
