Democratic Alliance to take VAT hike budget to court

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The Democratic Alliance (DA) will file papers in the Western Cape High Court to challenge Parliament’s passing of the 2025/26 National Budget.

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In a media statement on Wednesday, the DA said that: ‘It is unthinkable that ActionSA has handed this VAT hike to the ANC on a platter, and it is both unlawful and unconstitutional how Parliament processed the Budget.

‘ActionSA and the ANC were joined in passing this VAT Budget by the IFP, PA, GOOD, RiseMzansi, UDM, PAC, Al Jama-ah and BOSA who collectively have chosen to make life more expensive for South Africans.

‘The DA has vehemently opposed the Finance Minister’s Budget proposal, and we have negotiated for amendments that would have ensured economic growth and job-creation, because that is what South Africa needs.

‘Instead of the budget being amended to address the needs of struggling South Africans, the budget has been passed by the National Assembly with VAT hikes to make life more expensive for South Africans.

‘Yesterday’s (Tuesday’s) sitting of Parliament’s Finance Committee was not compliant with the standing rules of Parliament, in that the Fiscal Framework was not put to the Committee to approve or reject, and one proposal during the meeting of one political party was taken as adopted without the other tabled amendments being considered.

‘This legal shortcoming was carried forward into the National Assembly today. In the National Assembly this flawed Finance Committee report was approved by several parties in the National Assembly, but not the DA. This approval by those parties effectively means that the Budget measures announced by the Minister of Finance in his March 12th Budget Speech have now been adopted by the National Assembly.’

The DA’s court challenge rests on two key grounds:

1. The DA challenges the procedure of the Finance Committee on 01 April 2025, to consider and approve the Fiscal Framework, and
2. The DA challenges the constitutionality of certain revenue collection and expenditure measures becoming binding through a speech by the Finance Minister without Parliament having to consider, oversee or approve them.

‘We look forward to this matter being addressed in Court, for the benefit of all South Africans who do not agree to this budget.

‘The Democratic Alliance refuses to give in to the ANC’s tax increases. They remain hellbent on making people poorer.

‘The ANC is out of touch with the people, and if they bought their own groceries or filled their own tanks, they would know how expensive life already is.’