Mixed reaction to VAT court ruling
The court order also suspended the VAT increase until Parliament adopts legislation declaring the withdrawal of the VAT hike as an act of Parliament.
Picture: Pixabay.com
JOHANNESBURG - There has been mixed reaction to the Western Cape High Court order setting aside the value-added tax (VAT) increase and the fiscal framework.
On Sunday, the court ruled in favour of the Democratic Alliance (DA) and Economic Freedom Fighters (EFF)'s application - setting aside the fiscal framework adopted by Parliament earlier this month.
The court order also suspended the VAT increase until Parliament adopts legislation declaring the withdrawal of the VAT hike as an act of Parliament.
While the DA has hailed the court's order as a victory for South Africans, setting aside the fiscal framework and suspending the VAT increase, the African National Congress (ANC) only says it notes the court's ruling.
READ: DA hails court ruling suspending VAT increase
Earlier this month, the ANC, along with some of its Government of National Unity (GNU) partners and a few opposition parties, voted in favor of the fiscal framework in parliament.
The EFF had argued that the adoption was irregular, and this flawed process should have resulted in the VAT increase being nullified.
The court has agreed with the EFF position, as the framework has now been overturned.
The ANC says it will now wait for Parliament to decide on the next steps in making the necessary changes to the fiscal framework.