By Doreen Mokgolo
- The DA has asked the court to suspend the VAT hike, arguing the finance minister’s powers were misused.
- Parliament passed the budget despite pushback from opposition parties, including the DA, ActionSA and BOSA.
The DA has filed court papers in the Western Cape High Court in a bid to stop the planned VAT increase from taking effect on 1 May.
The party wants to block the 1% VAT hike announced by Finance Minister Enoch Godongwana during his budget speech. The increase is planned to happen in two phases: 0.5% in May and another 0.5% in April 2026.
DA leader Helen Zille said the party believes the increase is unconstitutional and will hurt already struggling South Africans.
“We are seeking an interdict to stop SARS from implementing the VAT hike on 1 May,” she said.
“This interdict request is based on our legal challenge to suspend the finance minister’s announcement of the VAT hike and overturning parliament’s adoption of the fiscal framework.
“We seek to suspend the operations of the finance minister’s announcement based on the constitutionality of the minister’s power to raise VAT by announcing it in his budget speech.”
If the court finds the move unconstitutional, Zille said Godongwana’s 12 March announcement would not be binding.
Earlier this week, parliament passed the 2025 fiscal framework, with 194 MPs voting in favour and 182 against. MPs from ActionSA, BOSA and other parties in the Government of National Unity supported it.
During the finance committee debate on Tuesday, the ANC proposed removing the VAT and tax hikes from the budget. But the DA called for the VAT increase to be scrapped and for government spending to be cut instead.
The DA also warned of “bracket creep” — the gradual increase in personal income tax due to inflation — further eating into people’s disposable income.
Pictured above: DA leader Helen Zille.
Image source: DA
