- The Western Cape High Court ruled that only Parliament, not the executive, can change the VAT rate, declaring section 7(4) of the VAT Act unconstitutional.
- The court found that allowing the Minister of Finance to alter VAT unilaterally is an impermissible delegation of legislative authority.
- The judgment reinforces the principle of “no taxation without representation” and upholds parliamentary oversight over taxation.
- The declaration of invalidity is suspended for 24 months to allow Parliament to amend the law.
- The DA views the ruling as a victory for constitutional governance and accountability in tax decisions.
Source: da.org.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.
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