The Western Cape High Court is expected to deliver judgement by no later than 29 April following an urgent application by the DA and EFF to have the 0,5% VAT increase, that is set to take effect on 1 May, declared unlawful.
The parties’ respective applications were heard on Tuesday (22 April) with a full bench consisting of Western Cape Judge President Nolwazi Mabindla-Boqwana and judges Kate Savage and Andre la Grange.
Both parties have argued that the increase, announced earlier this year, would place an undue burden on already struggling South African households and may have bypassed necessary parliamentary procedures.
Advocate Michael Bishop, representing the DA, contended that Finance Minister Enoch Godongwana overstepped his authority by announcing the VAT increase without explicit parliamentary approval.
He emphasised that “the power to tax can’t be delegated to the executive”, highlighting concerns over the lack of a formal vote on the fiscal framework report in Parliament.
He said their case was about who decides to increase the VAT percentage.
“It is a decision for Parliament to make,” he argued.
Advocate Tembeka Ngcukaitobi, representing the EFF, described the VAT increase as “substantively unconstitutional” and criticised the process as “irrational and deceptive”.
He argued that the increase would exacerbate inequality and adversely affect the poor.
In response, Advocate Mahlape Sello, representing Minister Godongwana, defended the legality of the VAT hike, stating that the minister’s actions were within constitutional bounds and subject to parliamentary oversight.
She warned that halting the increase would disrupt the fiscal framework and necessitate alternative measures to address the budget deficits.
