DA, EFF intensify legal battle over VAT hike and 2025 budget


2 minutes

The Democratic Alliance (DA) says it has filed supplementary court papers in the Western Cape High Court in the challenge against a VAT increase.

While Finance Minister Enoch Godongwana announced on Thursday that he would table a Rates Bill to reverse the VAT hike, the DA wants the High Court to specifically issue an order to stop the VAT increase.

The DA is of the view that the Finance Minister’s announcement that the VAT hike would be reversed is not enough, as this can only happen once the new Bill is adopted by Parliament.

The party claims that despite Godongwana’s announcement, the VAT increase will still come into effect on the 1st of May unless the court specifically issues an order to prevent this.

The DA says it’s currently waiting for the responding papers from Godongwana and National Assembly Speaker Thoko Didiza.

Meanwhile, the Economic Freedom Fighters (EFF), like the DA, has also escalated its fight filing supplementary court papers in the Western Cape High Court aiming to force Parliament to resent the 2025 budget process.

The party argues that South Africa has no lawful budget, and it is important to re-establish constitutional compliance and fiscal legitimacy in the budget process.

In its founding papers, the EFF had also argued that the report on the fiscal framework and revenue proposals adopted by the Joint Standing Committee on Finance, as well as the subsequent vote by the National Assembly earlier this month, were unlawful.

The red berets say Parliament must act with integrity to reclaim its constitutional role, uphold lawful processes, and ensure it serves the people of South Africa rather than political expediency.

The EFF and DA case is back in the High Court on Tuesday.