- The DA and EFF welcomed a court ruling declaring the finance minister’s unilateral power to set the VAT rate unconstitutional.
- The DA brought the case after Minister Enoch Godongwana tried to raise VAT from 15% to 15.5% in 2025.
- The court ruled that only Parliament has the authority to impose, change, or abolish taxes, and this power cannot be delegated to the executive.
- The judgment strengthens fiscal accountability and requires future VAT changes to follow proper legislative procedures.
- The invalidity of Section 7(4) of the VAT Act must be confirmed by the Constitutional Court, and Parliament has 24 months to amend the Act.
Source: ewn.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.
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