Cape Town – The Democratic Alliance (DA) has filed an urgent application in the Western Cape High Court to block the implementation of a 0.5% VAT increase, following its approval in Parliament.
The party challenges the constitutionality and validity of the resolutions passed regarding the 2025 fiscal framework and seeks to have Finance Minister Enoch Godongwana’s announcement of the VAT increase declared unconstitutional.
“We’re seeking an interdict to stop SARS from implementing the VAT hike on 1 May” – @helenzille
Our court bid challenges Parliament’s flawed adoption of the Fiscal Framework and the constitutionality of the Finance Minister’s unchecked power to raise VAT: https://t.co/xggcveMRAc pic.twitter.com/LUVRkqhp9W
— Democratic Alliance (@Our_DA) April 3, 2025
The DA argues that the minister’s power to unilaterally increase VAT without Parliament’s approval is unconstitutional.
The party also opposes mediation, seeking a court ruling on the matter.
Helen Zille, DA’s federal council chairperson, highlighted that the party is challenging Section 7.4 of the VAT Act, which allows the minister to impose VAT increases without parliamentary consent.
DA Federal Council chairperson Helen Zille says it is “unconstitutional” for Finance Minister Enoch Godongwana to have the powers to announce a VAT increase without the approval of Parliament. Zille says this gives the minister legislative powers. The DA has approached the court… pic.twitter.com/RFFLxTWmTc
— Newzroom Afrika (@Newzroom405) April 3, 2025
A media statement released by the Zille said: “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’s future involvement in the Government of National Unity (GNU) remains uncertain, pending further internal discussions.
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Compiled by Betha Madhomu
