Western Cape High Court rules VAT Act provision unconstitutional

Contributing sentiments towards policy:

50% : In its ruling, the court emphasised that VAT is a central national tax that affects every consumer.
46% : The court previously suspended the planned VAT increase and invalidated Parliament's approval of the fiscal framework linked to the tax changes.
44% : It said the provision directly affects the tax burden borne by every consumer of goods and services in South Africa and cannot be treated as a minor technical adjustment.
43% : The DA argued that Section 7(4) effectively delegates Parliament's constitutional power to impose or alter national taxes to the executive, specifically the Finance Minister, Enoch Godongwana.
42% : The full bench agreed with the argument that the provision grants the minister significant and unfettered authority over taxation.
38% : However, the proposed tax hike sparked fierce opposition from political parties and became a major point of contention within the Government of National Unity. DA leader John Steenhuisen rejected the plan, warning it would make South Africans poorer and worsen the cost-of-living crisis.
37% : In the latest ruling, the court confirmed that Section 7(4) of the VAT Act improperly transfers Parliament's authority over national taxes to the executive, reinforcing the constitutional principle that taxation powers must remain with the legislature.

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