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The Democratic Alliance (DA) last night filed a supplementary affidavit with the Western Cape High Court, against the VAT increase.
Earlier this week, IOL reported the DA remained adamant that the decision to reverse the controversial 0.5 percentage point increase in value-added tax (VAT) was a direct result of the blue party’s legal challenge.
DA federal council chairperson Helen Zille said this was an important legal development on the controversial matter.
“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,” she said.
The Fiscal Framework – including the VAT increase – was adopted by the Finance Portfolio Committee on 1 April and then by Parliament on 2 April.
“Therefore, only a court order can now stop the VAT increase from coming into force on 1 May,” said Zille.
“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,” she said.
She said the court must specifically issue an order to stop the VAT increase, on the basis that the Fiscal Framework was unlawfully adopted in both the Finance Portfolio Committee and in Parliament.
“This is what the DA’s supplementary affidavit seeks from the court. The respondents, the minister and the Speaker, must file their replying affidavits today (Saturday),” said Zille.
“We therefore await the court’s ruling in this matter.”
IOL has previously reported that Finance Minister Enoch Godongwana announced that the VAT rate would remain at 15%.
The National Treasury said the increase, originally scheduled to take effect on May 1, was withdrawn following consultations with political parties and a review of parliamentary recommendations.
Despite being part of the ANC-led Government of National Unity (GNU), the DA has had tense relations with the ruling party, especially after refusing to support the 2025 Budget Fiscal Framework that included the VAT increase.
The DA, along with opposition parties such as the Economic Freedom Fighters (EFF), voted against the budget and took the matter to the Western Cape High Court.
jonisayi.maromo@iol.co.za
IOL
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