- The Western Cape High Court declared parts of the VAT Act unconstitutional, specifically the section allowing the Finance Minister to change tax rates without parliamentary approval.
- The court ruled that only Parliament has the authority to alter tax rates, reinforcing the principle of “no taxation without representation.”
- The Democratic Alliance and Economic Freedom Fighters welcomed the decision, emphasizing the need for parliamentary oversight on taxation.
- Parliament has 12 months to amend the legislation following the court’s ruling.
- The case followed a VAT increase that delayed the budget delivery the previous year.
Source: enca.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"
- South Africa Budget 2026: Higher VAT Threshold and New Crypto Reporting Rules Announced
- Sanitised VAT Rulings Published: Consideration, Apportionment, Auctioneering Artwork, Student Accommodation
- South Africa Raises VAT Threshold and Implements New Crypto Reporting Rules for 2026-2027
- SARS to Intensify Tax Collection Amid Stagnant Economy and Government Revenue Pressure
- Key VAT Changes in South Africa’s 2026 Budget: Thresholds, Zero-Rating, Second-Hand Goods, and Compliance
