DA, EFF take VAT hike to court

DA, EFF take VAT hike to court

The controversial VAT increase is under the legal spotlight.

Judge striking a gavel in court
File photo: Istock/gorodenkoff

The planned 0.5% hike is being challenged in the Western Cape High Court on Tuesday.


The DA and the EFF believe the increase was rushed through Parliament, without proper scrutiny or debate.


The hike will push the VAT rate up to 15.5%.


The EFF's Omphile Maotwe says it follows what they view as an unprocedural adoption of the fiscal framework by the Standing Committee on Finance.


“[It] was adopted through a narrow margin on 3 April.


"The fiscal framework, which contains the VAT hike proposal must be stopped and could have been stopped if political parties such as Action SA and BOSA did not allow themselves to be used by the ANC to pass a budget with VAT hikes," she added. 


The VAT increase is set to take effect in 10 days.


The leaders of both political parties are expected to be in court.


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