Parties Counter Da's Claim: 'parliament, Not Courts, Reversed Vat Increase'

Political parties that voted for the budgets fiscal framework have dismissed the Democratic Alliances DA claim that its court case against the framework caused the reversal of the value added tax VAT increase .

Finance Minister Enoch Godongwana announced the reversal in a statement on Thursday 24 April.

DA Federal Council chairperson Helen Zille later claimed her party had stopped the tax hike through its court application, whose ruling is still pending.

It was only the real prospect of losing in court, thanks to the DA's exceptional legal team, that forced Treasury into retreat, she claimed.

However, the African National Congress ANC and several other parties disputed this claim at a media briefing on Thursday.

The parties included ActionSA, Build One South Africa, Inkatha Freedom Party, Patriotic Alliance, GOOD, Rise Mzansi, Pan-Africanist Congress, United Democratic Movement and Al-Jamah.

"It is now formally confirmed that the proposed increase in VAT, initially tabled in the March budget, will not proceed, they said.

This outcome is the product of sustained, lawful and transparent engagement, reflecting the constitutional supremacy of Parliament as the final authority on public finance.

"The integrity of this process must be underscored: it was Parliament - not the courts, not unelected bodies - that led the resolution. This is a reaffirmation of constitutionalism and a victory for democratic process."

Parliament must now vote to approve Godongwanas Rates and Monetary Amounts and the Amendment of Revenue Laws Bill Rates Bill for the VAT hike reversal to take effect. Godongwana has already gazetted the Bill.