Section 7 of the Value-Added Tax VAT Act, which allows the Minister of Finance to change the VAT rate, has been ruled unconstitutional and invalid in the Western Cape High Court.
The Democratic Alliance DA brought the application last year after a dispute over a proposed one per cent VAT increase announced by Finance Minister Enoch Godongwana in his 2025 Budget Speech, which was later withdrawn.
The court found that it takes 12 months before parliament can either confirm or reject new VAT rate adjustments proposed by the minister.
