Cape Town – The Western Cape High Court has ordered that the controversial value-added tax (VAT) hike must be “officially halted.”
The decision on Sunday (April 27, 2025) came three days after Finance Minister Enock Godogwana announced he was withdrawing the proposed increase after consultation, in the DA and Economic Freedom Fighters court challenge to obtain a VAT rate adjustment.
Related: Finance Minister Enoch Godonwana calls for an increase in VAT and seeks a settlement from the court.
The Minister also called for an out-of-court settlement with the Democratic Union (DA), the government of the national unification partner.
Helen Jill, chairman of the DA Federal Council, responded to the Western Cape High Court's ruling that VAT hikes must be officially stopped, saying the outcome was a “win for all South Africans.”
Zille added: “A court ruling ensures that changes to the VAT rate must be properly approved by Congress before they become effective, and puts aside the illegal endorsements loaned to this VAT hike by many parties.
“We are pleased that the Minister of Finance has finally returned to the table and agreed to suspend the increase in VAT in a legitimate way.
“This indicates that government decisions cannot be made without proper oversight.
“It also ensures that changes that affect the pockets don't happen unless they are in the necessary checks and balance.
“The imminent VAT hike was formally stopped by a court order agreed between the Minister of Finance and the DA.”
This includes settlements with the speakers, the DA said.
The DA said, “We will continue to fight for all South Africans to ensure that we grow and create an economy that creates jobs.”
