EFF accuses Treasury, Parliament of misleading SA over VAT hike reversal
The EFF's counsel, Tembeka Ngcukaitobi, accused the finance minister of deceiving ActionSA when he hinted that the VAT increase decision could be reversed before its implementation.
Finance Minister Enoch Godongwana and the Finance department briefing a joint meeting with various committees on the 2025 budget speech; on Friday, 14 March 2025. Picture: Phando Jikelo/ Parliament of SA
CAPE TOWN - National Treasury and Parliament have been accused of misleading South Africa by giving the impression that the value-added tax (VAT) increase could be reversed.
The Economic Freedom Fighters (EFF) also accused Finance Minister Enoch Godongwana of deception after telling ActionSA that the 0.5 percentage point VAT increase could be changed before its implementation next week Thursday.
The EFF and Democratic Alliance (DA)'s legal representatives made arguments in the Western Cape High Court on Tuesday as part of the DA's challenge to interdict the VAT increase and have it set aside.
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The Western Cape High Court heard arguments from the DA, which told the court that it should be Parliament that decides on the VAT rate change and not the minister.
The DA's senior counsel, Michael Bishop, said their case was "about making sure democratically elected representatives decide and not the minister".
The EFF's counsel, Tembeka Ngcukaitobi, meanwhile accused the finance minister of deceiving ActionSA when he hinted that the VAT increase decision could be reversed before its implementation.
"So, they themselves said these revenue proposals must effectively suspend the proposed increases. So that too was deceptive because it lied to the public by creating the impression this VAT rate increase is subject to change."
But advocate Mahlape Sello, representing the National Treasury, told the court that a comparison of the speech and the accusations of the EFF would demonstrate that there was no deception.
"The sum total of the minister's response is firstly to deny there was deception on his part, secondly to rely on the actual speech he made on the 12th of March."
The court is expected to deliver its judgment next week Tuesday.