South Africa: Democratic Alliance Files Court Papers to Challenge Vat-Hike Budget

3 April 2025
Democratic Alliance (Cape Town)
press release By Helen Zille - DA Federal Council Chairperson

Today, I filed papers in the Western Cape High Court to challenge the legality of the 2025/26 National Budget process.

A VAT increase is set to come into effect on 1 May unless it is interdicted, and that is what the Democratic Alliance (DA) is doing. We are taking this fight to court to ensure that South Africans are not unfairly burdened with higher costs of living.

We are seeking an interdict to stop SARS from implementing the VAT hike on 1 May. This interdict request is based on our legal challenge to suspend the finance minister's announcement of the VAT hike and overturning Parliament's adoption of the Fiscal Framework.

We seek to suspend the operation of the Finance Minister's announcement of the VAT hike on the basis of the constitutionality of the Minister's power to raise VAT by announcing it in his Budget speech. If this is found to be unconstitutional, Minister Godongwana's announcement on 12 March of the VAT hike would not be binding.

By voting for the Fiscal Framework in Parliament yesterday, ActionSA, the IFP, and several smaller parties were complicit in hiking VAT for the people of South Africa. This decision will have a devastating effect on South Africans already struggling to make ends meet.

The DA has been consistent from the beginning that without meaningful economic reforms to grow the economy, we could not support a VAT hike.

The DA will continue to act in the best interests of South Africans and ensure policies that accelerate economic growth.

Read the original article on DA.

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