Western Cape High Court Hears Case Against 0.5% VAT Hike Set for May 1
Prominent legal mind Advocate Tembeka Ngcukaitobi is currently representing the Economic Freedom Fighters (EFF) in the Western Cape High Court, as the party challenges the legality of the government’s proposed 0.5 percentage point increase in Value-Added Tax (VAT), scheduled to take effect on 1 May 2025.
The EFF, joined in opposition by the Democratic Alliance (DA), argues that the tax increase was pushed through Parliament without sufficient scrutiny or meaningful debate. They claim this procedural flaw undermines South Africa’s constitutional principles and democratic processes.
Both parties have also raised concerns about the socio-economic impact of the VAT hike, stating that it places an unfair burden on the poor and working-class South Africans, while failing to address structural inequality.
Finance Minister Enoch Godongwana has defended the move, maintaining that the VAT increase is a difficult but necessary step to respond to South Africa’s growing fiscal pressures. He argued that without such measures, the country risks further economic instability.
The court’s decision, expected in the coming days, could have far-reaching consequences not just for South Africa’s tax policy, but also for the political discourse around economic justice and parliamentary accountability.
