Court Ruling On Vat Hike Brings Some Certainty: Kieswetter

The South African Revenue Service SARS Commissioner Edward Kieswetter says the Western Cape High Court ruling on the Value-Added Tax VAT hike brings some certainty on the administration of the VAT Act.

SARS has assured consumers that vendors have no legal basis to implement the higher rate and is vowing to monitor compliance.

The Western Cape High Court issued an order suspending the 0.5 percentage point VAT increase in a case brought by the Democratic Alliance DA and the Economic Freedom Fighters EFF.

The Finance Ministry had earlier withdrawn the VAT hike.

Kieswetter says it is back to the drawing board as he calls for an open process to the budget.