US EditionCourt halts VAT hike, orders Godongwana to pay DA, EFF legal costs
- The Western Cape High Court ordered a suspension of the planned 0.5% VAT increase set to take effect on May 1, 2025.
- The case arose after Finance Minister Enoch Godongwana announced the VAT hike under Section 7 of the VAT Act, prompting legal challenges from the DA and EFF citing lack of proper parliamentary approval.
- The court's ruling, agreed with the Minister and DA, set aside parliamentary resolutions that adopted the fiscal framework and requires any VAT adjustment to be legislated.
- Godongwana, Speaker Thoko Didiza, and National Council Chair Refilwe Mtshweni-Tsipane have been directed to cover half of the legal expenses, which comprise fees for two senior advocates.
- The decision reinforces parliamentary oversight on fiscal matters, delays VAT changes until proper legislation passes, and provides relief to South African consumers and businesses.
27 Articles
27 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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