VAT can only be increased after Parliament decides, not through finance minister's decision - DA
The DA argued that its case was about making sure democratically elected representatives in the National Assembly and the National Council of Provinces (NCOP) decide on the increase and not the minister alone.
Democratic Alliance officials and supporters outside the Western Cape High Court on 22 April 2025 for the party's legal challenge against the VAT increase. Picture: @Our_DA/X
CAPE TOWN - The Democratic Alliance (DA) has told the Western Cape High Court that value-added tax (VAT) can only be increased after Parliament decides and not through a decision of the finance minister.
The party, along with the Economic Freedom Fighters (EFF) have approached the court to interdict May's 0.5 percentage point VAT increase, saying it will hurt all South Africans and cause food inflation.
The DA argued that its case was about making sure democratically elected representatives in the National Assembly and the National Council of Provinces (NCOP) decide on the increase and not the minister alone.
It also wants the court to declare the Value-Added Tax Act as unconstitutional.
The DA's legal counsel, Michael Bishop, has told the court that Minister Enoch Godongwana acted unlawfully and Parliament should have decided on the VAT increase instead of the minister.
Bishop said that Parliament cannot delegate its taxing power to the minister because it doesn't have those powers.
Meanwhile, outside the court, party chief whip, George Michalakis, told supporters the case was about more than just the VAT increase.
"This is an important part of the fight, but at the core of what we are campaigning for lies something much more important - the ability of individuals to feed their families, to pay their bills and to find a job."
The court will hear more submissions from the EFF before responses from Treasury and Parliament.