DA files urgent application to interdict implementation of VAT hike
The party wants the implementation of the hike suspended pending the outcome of the review application.
Democratic Alliance (DA) Federal Council chairperson, Helen Zille, holds up the party's court papers outside the Western Cape High Court on 3 April 2025. Picture: Babalo Ndenze/EWN
JOHANNESBURG - The Democratic Alliance (DA) has filed an urgent application to interdict the implementation of the 0.5% value-added tax (VAT) increase before the Western Cape High Court.
The announcement was made at a briefing in Cape Town on Thursday.
The party wants the implementation of the hike suspended pending the outcome of the review application.
The fiscal framework was passed in Parliament on Wednesday, with 194 votes in favour.
In the urgent application brought by the DA in the Western Cape High Court, the party seeks to challenge the constitutionality and validity of the resolutions passed by the National Assembly and the National Council of Provinces (NCOP) regarding the 2025 fiscal framework.
It also wants Finance Minister Enoch Godongwana's announcement of a phased increase of the VAT to be declared unconstitutional.
In its papers, the DA requests the court to declare these actions invalid and to suspend the implementation of the VAT increase pending the finalisation of the constitutional challenge.
It argues that the minister's power to unilaterally increase VAT is unconstitutional.
Additionally, the applicants formally oppose any referral of the matter to mediation, asserting that the nature of the relief sought requires a court determination.
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Federal council chairperson Helen Zille explains the party's challenge of the country’s VAT Act on a semi-urgent basis.
“The second part of these papers is to get Section (7.4) of the Vat Act declared unconstitutional, because it gives the minister the power to enforce a VAT increase without taking it through Parliament, and without the need to have the fiscal framework and other legislation required passed through Parliament.”
On whether the court challenge signals the DA’s departure from the GNU, Zille says it’s still premature, adding that the party’s federal executive will meet later where any decision on the way forward will be taken.