- The Western Cape High Court ruled Section 7 of the VAT Act, allowing the Finance Minister to change the VAT rate, unconstitutional and invalid.
- The case was brought by the Democratic Alliance after a proposed VAT increase in the 2025 Budget Speech.
- The court highlighted a 12-month delay before Parliament can confirm or reject VAT changes, risking taxpayers not being reimbursed if changes are rejected.
- The High Court referred the matter to the Constitutional Court for a final decision.
- The court’s main concern is the 12-month time-lag, not the delegation of legislative authority.
Source: sabcnews.com
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.
Latest Posts in "South Africa"
- Court Orders Parliament to Limit Finance Minister’s Power Over VAT Increases
- South African Court Rules VAT Changes Require Parliamentary Approval, Not Ministerial Decree
- High Court Rules Only Parliament Can Change VAT Rates, Declares VAT Act Section Invalid
- Court Rules Only Parliament Can Change VAT Rate, Not Finance Minister, in DA Victory
- VAT Registration Thresholds Increased to Ease Compliance for Small Businesses from April 2026
