- The High Court found section 7(4) of the VAT Act inconsistent with the Constitution, limiting the Finance Minister’s ability to change tax rates without Parliament’s direct role.
- The ruling arose from the DA’s challenge to the 2025 proposed VAT hike, which had triggered concerns about unilateral tax-setting powers.
- The court held that Parliament, not the Finance Minister, has the primary authority over tax rate changes, though limited delegation is possible under clear constitutional controls.
- The judgment reinforces legislative supremacy in taxation and says any future delegation must include strict limits and parliamentary oversight.
Source: dailyinvestor.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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