Xavier Radio Ug News 24 7
The Economic Freedom Fighters (EFF) have welcomed a ruling by the Western Cape High Court, which found that only Parliament can change South Africa’s VAT rate.
The court has given Parliament 24 months to amend the law.
The decison overturns Minister of Finance Enoch Godongwana’s attempt to raise VAT, delcaring the relevant section of the VAT Act invalid.
The party says the judgment protects citizens from unliateral tax increases and strengthens its ongoing case againt a planned fuel levy hike.
WATCH | The Western Cape High Court has declared Section 7 of the VAT Act, which lets the Minister of Finance change the VAT rate, unconstitutional and invalid. pic.twitter.com/UGEYTKYRd7
— SABC News (@SABCNews) March 6, 2026
The development follows last year’s chaotic budget process when Godongwana proposed raising VAT from 15% to 17%, before later revising it in the second budget attempt. This triggered legal action from the Democratic Alliance and EFF, who argued that there can be no taxation without proper parliamentary oversight.
The VAT hikes was scrapped in the third and successful attempt to pass the budget.
www.sabcnews.com, https://www.sabcnews.com/sabcnews/eff-welcomes-high-court-decision-on-vat-rate-authority/
