- The South African Minister of Finance attempted to increase the VAT rate via the 2025 Budget, but this was challenged by opposition parties.
- The Western Cape High Court ruled that only Parliament, not the Minister, has the authority to change the VAT rate.
- The court declared section 7(4) of the VAT Act unconstitutional for giving the Minister excessive power without clear limits.
- The ruling is suspended for 24 months to allow Parliament to amend the law, pending confirmation by the Constitutional Court.
- The decision reinforces the principle that tax changes require parliamentary approval, ensuring democratic oversight.
Source: vatabout.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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