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SARS, Treasury Challenge Court Ruling on Finance Minister’s VAT Powers

  • SARS and the National Treasury are asking the Constitutional Court to overturn a High Court ruling on who can change South Africa’s VAT rate.
  • The High Court found Section 7(4) of the VAT Act unconstitutional, saying only Parliament may alter VAT through formal legislation.
  • SARS and Treasury argue the Finance Minister needs flexibility to adjust tax rates quickly to meet fiscal demands.
  • Opposition parties like the DA and EFF say giving the executive this power unlawfully bypasses Parliament’s constitutional authority over taxation.

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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