Western Cape High Court Puts Brakes On Planned Vat Increase

The Western Cape High Court has ruled to suspend the VAT increase announcement made last month, preventing the tax hike from taking effect on May 1.

In a significant ruling, the court also overturned the resolution of the National Assembly adopting the report of the Joint Standing Committee on Finance on the Fiscal Framework and Revenue proposals adopted earlier this month.

Finance Minister Enoch Godongwana has been ordered to pay 50 of the legal costs, including costs to two senior counsel.

National Assembly Speaker Thoko Didiza and National Council of Provinces Chairperson Refilwe Mtshweni-Tsipane have also been ordered to pay 50 of the legal costs, including costs to two senior counsel.

The courts order is subject to Part B of the DAs application, which seeks to have the VAT Act declared unconstitutional.