VAT hike: Godongwana says any court relief sought by DA, EFF would be 'moot'
In responding papers on the DA and EFF’s Western Cape High Court applications, Finance Minister Enoch Godongwana said it’s a little too late to change the 0.5 percentage point VAT increase in May.
Finance Minister Enoch Godongwana delivered the national budget for 2025 - weeks after it was postponed due to disagreements within the Government of National Unity (GNU). Picture credit: Phando Jikelo/Parliament
CAPE TOWN - Minister of Finance Enoch Godongwana said any court relief sought by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) would be "moot" because the decision to introduce the value-added tax (VAT) rate increase had already been made.
In responding papers on the DA and EFF’s Western Cape High Court applications, Godongwa said it’s a little too late to change the 0.5 percentage point VAT increase in May.
He also dismissed the argument that his VAT announcement was unlawful.
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The DA and EFF are both seeking final relief by getting the court to set aside resolutions of the National Assembly and National Council of Provinces (NCOP) to adopt a committee report on the fiscal framework.
The DA also wants the VAT Act and VAT increase announcement in March to be declared unconstitutional.
In his affidavit, Godongwana confined himself to opposing prayers 3 and 4 in part A of the DA's motion, where they seek an order suspending his announcement on 12 March to increase the VAT rate.
The party also seeks an interim interdict preventing the South African Revenue Service (SARS) from implementing Godongwana’s decision on 1 May.
Godongwana said the view that his VAT rate announcement was unlawful because of an alleged unlawful adoption of the fiscal framework "has no legal basis".
"The announcement continues to exist and has legal effect," said Godongwana.
He also explained that the fiscal framework was not legislation, nor did it impose taxes.
"It’s a parliamentary resolution that sets out revenue proposals," argued Godongwana.
In relation to the EFF, which joined the case as an intervening party, Godongwana said he doesn’t oppose their application to intervene, but said their notice of motion was "difficult to understand".
The minister said it was unclear whether the EFF sought merely to interdict the committee’s report or whether the EFF sought to interdict the introduction of the VAT increase.
Godongwana has requested the court to dismiss both applications, including a costs order for three counsels.