DA fights to stop ‘secret’ VAT hike — Court battle looms despite treasury backdown

Zille

Cape Town – The Democratic Alliance (DA) has filed a supplementary affidavit in the Western Cape High Court to block the ANC’s proposed 0.5% VAT hike, despite Finance Minister Enoch Godongwana announcing the reversal of the increase.

DA Federal Council Chair Helen Zille said legal steps are still needed because the Fiscal Framework approving the VAT hike was already passed by Parliament and could only be stopped by a court order.

“There have been important legal developments on the VAT matter, that required the Democratic Alliance to file a supplementary affidavit with the Western Cape High Court late last night.

“The supplementary affidavit is necessary because, despite the developments of the past week, the VAT increase will still come into effect on 1 May, unless the court specifically issues an order to prevent this,” Zille said.

The DA argues that without such an order, the VAT increase will still legally take effect on 1 May 2025.

“Following the DA’s bid to interdict the VAT increase, heard in the Western Cape High Court on 22 April, the Minister backed down, issuing a press statement to this effect. He also gazetted his intention to introduce a new Bill to Parliament, revising the Fiscal Framework (without the VAT increase). However, this is not enough to prevent a VAT increase coming into effect on 1 May, because the new Bill will not yet have been adopted by Parliament.

“The court must specifically issue an order to stop the VAT increase, on the basis that the Fiscal Framework was unlawfully adopted in the both the Finance Portfolio Committee and Parliament itself,” said Zille.

The party also seeks to have the fiscal framework declared unlawful and want Godongwana to pay half their legal costs.

Although the Treasury reversed its support for the hike due to political and public pressure, the DA insists the legal process must be properly addressed to prevent consumer harm.

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