High court strips Finance Minister of power to hike VAT rate alone – SABC News

Section 7 of the Value-Added Tax (VAT) Act, which allows the Minister of Finance to change the VAT rate, has been ruled unconstitutional and invalid in the Western Cape High Court.The court found that it takes 12 months before parliament can either confirm or reject new VAT rate adjustments proposed by the minister.The court was particularly concerned that if Parliament decides after 12 months not to confirm the changes, taxpayers will not be reimbursed.The High Court has asked the Constitutional Court to have the final say on the ruling.The High Court maintains that it doesn’t oppose delegating legislative authority to the Executive, but its primary concern is the VAT time-lag of 12 months.
EFF welcomes Western Cape High Court ruling determining only Parliament can effect changes to value added tax (VAT) rate, not the Minister of Finance.
—The EFF is therefore vindicated for its principled argument made in the Standing Committee on Finance, the National Assembly,… pic.twitter.com/P6qCRMy9ep
— Economic Freedom Fighters (@EFFSouthAfrica) March 6, 2026
www.sabcnews.com, https://www.sabcnews.com/sabcnews/high-court-strips-finance-minister-of-power-to-hike-vat-rate-alone/