DA files court papers to block VAT hike

Parliament approved the fiscal framework on Wednesday, with 194 votes in favour from the ANC, IFP, Patriotic Alliance, RISE Mzansi, and several smaller parties.  

The party argues that the process of passing this part of the budget was unconstitutional and procedurally flawed.  

Despite being part of the Government of National Unity, the DA says it will not support what it calls an unfair and burdensome tax increase.  

DA Federal Council Chairperson Helen Zille says the party is seeking an interdict to prevent the South African Revenue Service from implementing the VAT increase while challenging its constitutionality in court.  

"A VAT increase is set to come into effect on 1 May unless it is interdicted, and that is what the DA is doing. We are taking this fight to court to ensure that South Africans are not unfairly burdened with higher costs of living,” she said outside the court in Cape Town on Thursday.

"We seek to suspend the finance minister's announcement of the VAT hike on the basis of its constitutionality. If this is found to be unconstitutional, Minister Godongwana's announcement on 12 March would not be binding.  

"By voting for the Fiscal Framework in Parliament yesterday, ActionSA, the IFP, and several smaller parties were complicit in hiking VAT for the people of South Africa,” Zille said.  

She insisted that the DA has been consistent in its opposition to the tax increase, arguing that economic growth, rather than higher taxes, is the solution to South Africa’s fiscal crisis.  

"Without meaningful economic reforms, we could not support a VAT hike. The DA will continue to act in the best interests of South Africans and push for policies that accelerate economic growth," she added.  

Zille also reaffirmed the DA’s commitment to the GNU but stressed that the party would not blindly support decisions it disagrees with.  

"We are in the GNU for one sole purpose only: to get South Africa’s economy to grow at the rate it needs to grow in order to absorb more people into productive employment and thereby reduce poverty," she said.  

The VAT increase, announced by Finance Minister Enoch Godongwana in his 2025 budget speech, is expected to generate an additional R15 billion in revenue.

However, it has been widely criticised for its potential impact on citizens, particularly lower-income households.  

If the court grants the DA’s interdict, it could delay or halt the implementation of the VAT hike pending a full legal review.  

The Western Cape High Court has yet to set a hearing date.  

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