Finance Minister Enoch Godongwana has argued that court applications by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) challenging the upcoming VAT increase are effectively pointless, as the decision has already been finalised.
In responding papers filed in the Western Cape High Court, Godongwana stated that it is too late to reverse the 0.5 percentage point increase to the VAT rate, set to take effect in May. He dismissed claims that his announcement was unlawful, maintaining that the decision remains legally valid.
The DA and EFF are both seeking court orders to overturn resolutions adopted by the National Assembly and the National Council of Provinces (NCOP), which approved a committee report on the fiscal framework. Additionally, the DA wants the VAT Act and the March announcement of the tax increase to be declared unconstitutional.
Godongwana’s affidavit focuses on opposing parts of the DA’s application—specifically the interim relief they seek. The DA is asking the court to suspend his 12 March VAT announcement and to prevent the South African Revenue Service (SARS) from implementing the change on 1 May.
According to the minister, arguments that his announcement is unlawful due to an allegedly flawed adoption of the fiscal framework hold no merit. He clarified that the fiscal framework is not legislation and does not itself impose taxes, but rather outlines revenue proposals through parliamentary resolution.
Regarding the EFF’s involvement as an intervening party, Godongwana said he does not oppose their participation in the case. However, he noted that their legal submissions were unclear—particularly whether they sought to challenge the committee report or the VAT increase itself.
Godongwana concluded by asking the court to dismiss both parties’ applications and requested a costs order for three legal counsels.
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