EFF and DA elated by High Court VAT judgment

Minister of Finance Enoch Godongwana. Picture: X/GovernmentZA In a recent occurrence, the EFF and the DA have united in support of the Western Cape High Court’s decision to declareFinance Minister Enoch Godongwana’s unilateral decisionto raise taxes without parliament’s approval illegal. The court found that allowing the minister of finance to unilaterally alter the VAT rate through a budget announcement amounts to an impermissible delegation of legislative authority.

The judgment affirmed that taxation powers must remain firmly in the hands of parliament as the elected representatives of the people. In a statement on Friday, DA federal council chairperson Helen Zille welcomed the judgment, which declares section 7(4) of the Value-Added Tax (VAT) Act unconstitutional. She said it confirmed the DA’s argument that the power to determine taxes cannot be delegated to the executive.

“The executive cannot hold unchecked authority to adjust a national tax without parliament. The DA brought this case to defend the constitutional role of parliament and to ensure that decisions affecting the tax burden on millions of South Africans are taken transparently and democratically. “The judgment strengthens accountability in fiscal governance and ensures that any future changes to VAT must occur through proper legislative processes,” said Zille.

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The EFF’s Sinawo Thambo also expressed support for the Western Cape High Court’s decision. “The EFF is therefore vindicated for its principled argument made in the standing committee on finance, the National Assembly, in the Western Cape High Court and across broader society that there should never be taxation without representation. “The ability to increase the taxes on citizens should be determined by their democratically elected public representatives and should not be determined by an individual who operates on the misguided economic advice of a neo-liberal National Treasury, which draws its policy inspiration from a parasitic financial sector, the World Bank and International Monetary Fund,” said Thambo. Thambo said this ruling will further bolster the EFF’s case, which is before the courts, against the unilateral decision by the Minister of Finance toincrease the fuel levyin 2025.

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