Cape Town – The Western Cape High Court has ordered that the controversial value-added tax (VAT) hike must be “officially suspended”.
The ruling on Sunday (27 April 2025) in the DA and Economic Freedom Fighters’ court challenge to have the VAT rate adjustment set aside came three days after Finance Minister Enock Godogwana announced that, following consultations, he was withdrawing the proposed increase.
The court also set aside the 2025 Fiscal Framework and Revenue Proposals.
The minister also sought an out-of-court settlement with the Government of National Unity partner, the Democratic Alliance (DA), which took the matter to court.
Reacting to the Western Cape High Court’s ruling today that a VAT hike must officially be suspended, DA Federal Council Chairperson Helen Zille said the outcome was “a victory for all South Africans”.
Zille added: “The court’s decision ensures that any changes to the VAT rate must be properly approved by Parliament before taking effect, and sets aside the unlawful support lent to this VAT hike by a number of parties.
“We are pleased that the Minister of Finance eventually came back to the table and agreed to suspend the VAT increase in a lawful manner.
“This shows that government decisions cannot be made without proper oversight.
“It also gives South Africans certainty that changes affecting their pockets will not happen without the necessary checks and balances in place.
“The impending VAT hike has now been formally stopped by an order of court agreed between the Minister of Finance and the DA”.
This also includes a settlement with the Speaker, the DA said
The DA said, “It will continue to fight for and with all South Africans to ensure that we create an economy that grows and creates jobs”.
