- The Cape Town High Court ruled Section 7(4) of the Value-Added Tax Act unconstitutional and invalid.
- It held that only Parliament, not the Minister of Finance, has the power to change the VAT rate.
- The case was brought by the DA and EFF after a proposed 0.5 percentage point VAT increase in the 2025 Budget.
- The court suspended the invalidity ruling for 24 months so Parliament can fix the law.
Source: businessday.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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