US EditionCourt halts VAT hike, orders Godongwana to pay DA, EFF legal costs
- The Western Cape High Court ordered the suspension of the planned VAT rate increase on Sunday, effective today, following a court challenge.
- This ruling stemmed from an application by the Democratic Alliance and EFF challenging the proposed hike and related parliamentary actions.
- The court's order set aside resolutions from the National Assembly and NCOP that adopted the fiscal framework supporting the increase.
- The order suspends the planned 0.5% VAT increase, scheduled for May 1, until Parliament formally passes legislation regulating the rate.
- This decision clarifies that tax changes require proper legislative oversight before implementation.
24 Articles
24 Articles
High Court officially suspends VAT increase in South Africa
In a landmark ruling just days before a scheduled tax hike, the Western Cape High Court has officially suspended South Africa’s planned VAT increase, bringing relief to consumers and businesses across the country. The Court ruled that the proposed half-percentage-point increase, set to take effect on 1 May 2025, as well as a second planned hike in April 2026, are suspended pending the formal passing of legislation regulating the VAT rate. The Co…
Court halts VAT hike, orders Godongwana to pay DA, EFF legal costs
Finance Minister Enoch Godongwana suffered a blow at the Western Cape High Court on Sunday, where he was ordered to pay half the legal costs of the DA and the EFF after he decided to drop his opposition to their bid to scrap his 0.5 percentage point VAT increase.
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