The Democratic Alliance (DA) has filed papers in the Western Cape High Court to challenge the legality of the 2025/26 National Budget process, focusing on the planned Value-Added Tax (VAT) increase scheduled for May 1.
This comes after the 2025 fiscal framework was passed on Wednesday with support from the African National Congress (ANC), Inkatha Freedom Party (IFP), the Patriotic Alliance, and ActionSA.
The DA, Economic Freedom Fighters (EFF), and the uMkhonto weSizwe Party (MK Party) voted against it.
The party is seeking an interdict to prevent the South African Revenue Service (SARS) from implementing the hike, claiming it will unfairly burden South Africans with higher costs of living.
In a statement, DA Federal Council Chairperson Helen Zille emphasised the party’s position, stating: "We are taking this fight to court to ensure that South Africans are not unfairly burdened with higher costs of living."
The DA argues that the VAT increase, announced by Finance Minister Enoch Godongwana on March 12, is unconstitutional because the power to raise VAT should not lie solely with the minister's announcement during the Budget speech.
The DA seeks to suspend the operation of this announcement, asserting that it should not be binding if found unconstitutional.
"The DA has been consistent from the beginning that without meaningful economic reforms to grow the economy, we could not support a VAT hike,'' said DA's federal chairperson Helen Zille.
The DA's legal challenge focuses on the constitutionality of the Finance Minister's ability to raise VAT through such an announcement without proper legal processes.
The VAT increase was approved in Parliament after voting by parties like ActionSA, the IFP, and smaller parties.
The DA condemns this decision, arguing that it will severely affect South Africans who are already struggling financially.
''This decision will have a devastating effect on South Africans already struggling to make ends meet.''
The party maintains that without significant economic reforms, such as those necessary to stimulate growth, raising VAT is an unjust measure.
''We could not support a VAT hike,'' she said.
Zille reaffirmed the party's commitment to policies that foster economic growth, stressing that the fight against the VAT hike is part of its ongoing efforts to protect the interests of South Africans.
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