- The Western Cape High Court declared section 7(4) of the VAT Act unconstitutional, reaffirming that only Parliament has the core power to impose or change taxes, not the finance minister.
- The ruling challenges the practice of the finance minister unilaterally announcing VAT rate changes with immediate effect, pending later parliamentary approval.
- This decision could impact other laws that allow the minister to change taxes by announcement.
- The court’s decision follows political and civil society resistance to recent VAT increases announced by the minister, which forced businesses to incur costs and adjust systems before parliamentary confirmation.
- The judgment may be contested in the Constitutional Court by the finance minister and Parliament.
Source: sundayworld.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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