Court Battle Puts Parliament to the Test Over VAT Hike

(The Post News)– The Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) are challenging the 0.5% value-added tax (VAT) hike in the Western Cape High Court, arguing that the Minister of Finance cannot I implement the increase without parliamentary approval.

According to DA chief whip George Michalakis, this case will test parliament’s oversight of executive decisions. The crux of the matter is whether the minister can enact the VAT hike before parliament ratifies it.

The court case is a significant test for South Africa’s legislature, which has historically been seen as a rubber stamp for executive decisions. DA chief whip George Michalakis argues that the minister’s attempt to implement a VAT hike without parliamentary approval undermines the separation of powers.

The case goes beyond just the VAT increase, touching on broader issues of economic hardship and the ability of citizens to afford basic needs. Michalakis suggests that forcing the minister to revise the budget might be a better outcome than allowing inefficient government spending and new taxes.

The DA and EFF are challenging the VAT hike in court, arguing it’s unfair to impose new taxes without parliamentary approval. They claim the poor will suffer most from the increase. The EFF’s Omphile Maotwe says the ANC’s attempt to accept and amend the fiscal framework is contradictory and procedurally unfair.

The court’s decision will determine whether the VAT hike goes ahead. If the court rules in favour of the DA and EFF, the minister will have to reconsider the budget; however, even though the court rules against the two parties, the ANC will still face challenges in passing the Appropriations Bill.

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Natalie Semono

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I am Natalie Semono and I am an environmental reporter with a Journalism Studies qualification from Rosebank College. I am passionate about telling impactful stories on climate change, conservation, and environmental justice. With a clear, engaging style, I translate complex issues into narratives that inform and inspire. My reporting aims to amplify underrepresented voices and connect communities with the urgent environmental challenges shaping our world.

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