DA moves ahead with court application to challenge country’s VAT legislation
This is despite the VAT increase reversal by National Treasury as it prepares to settle out of court in the part the application to interdict the implementation of the 0.5% increase.
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 is still moving ahead with Part B of its court application to challenge the constitutionality of the country’s value-added tax (VAT) legislation.
This is despite the VAT increase reversal by National Treasury as it prepares for an out-of-court settlement with the party on its application to interdict the implementation of the 0.5% increase.
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The DA briefed the media earlier on Thursday, claiming victory for the VAT reversal and also gave details on its plans going forward.
DA federal chairperson, Helen Zille, says the focus is now on Part B of its court application to have the VAT Act declared unconstitutional.
The party says the VAT Act allows the minister to “usurp” power from elected members of Parliament.
Zille said Parliament also failed to abide by its own legislation when deciding whether to endorse the VAT increase.
"And Section 7(4) of the VAT Act unconstitutionally delegates that power to the minister. So, we will continue with Part B of our application."
She said the party is yet to receive a formal written settlement offer from the minister, and will keep the public informed of any developments.