High Court Rules Finance Minister Cannot Unilaterally Raise VAT Rate Without Parliamentary Approval

• 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.

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