Enoch Godongwana Responds to DA and EFF’s Court Challenge, Says It's Too Late to Stop VAT Increase

• Enoch Godongwana responded to an application brought against the recently adopted budget
• Godongwana maintained that it was too late for the Value-Added Tax (VAT) increase to be stopped
• The Democratic Alliance (DA) and Economic Freedom Fighters (EFF) approached the Western Cape High Court to stop the budget

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent 10 years working for the Northern Natal Courier before transitioning to online journalism.

WESTERN CAPE – Enoch Godongwana has stated that the Value-Added Tax (VAT) increase can’t be interdicted at this point.

The Finance Minister made the statement in response to a court bid made by the Democratic Alliance (DA) and Economic Freedom Fighters (EFF).

The DA and EFF approached the Western Cape High Court following the adoption of the fiscal framework on 12 March 2025 in the National Assembly.

Read also

ANC considering abandoning VAT increase ahead of 6 May deadline, party failing to attract support

Godongwana asks court to dismiss VAT challenge

In his replying affidavit to the papers filed in court, Godongwana said that it was too late to stop the VAT hike.

“My decision to introduce the VAT rate increase cannot be interdicted at this stage,” he said.

The finance minister also requested that the court dismiss the applications and include a costs order for the counsels.

The DA’s application has two parts, with the first being an application to the court to set aside the decision by the National Assembly to adopt the fiscal framework.

In the second part of its application, the party asked that the court declare Section 7(4) of the Value Added Tax Act unconstitutional. It stated that the law improperly granted the finance minister authority to impose tax increases without full parliamentary approval. The EFF filed papers in support of the DA’s court application.

Godongwana responded that while he didn’t agree with the DA’s arguments, he would also respect the court’s findings.

Read also

Cyril Ramaphosa refuses to cut 43 deputy minister posts, BOSA says doing so will save R94m annually

What you need to know about the budget speech saga

• Julius Malema stated that the government collapsed after failing to present a budget on 19 February.
• The uMkhonto weSiwe (MK) Party threatened a national shutdown if a VAT hike was included in the budget.
• The 2025 Budget was adopted in the National Assembly on 2 April 2025 after 194 members voted in favour of it.
• The EFF filed papers in court to challenge the legality of the budget adopted by Parliament.
• The ANC Youth League wants DA ministers to be removed from their posts for voting against the budget.
• The African National Congress (ANC) and DA sat down to discuss the future of the Government of Nationl Unity (GNU) following the divisions caused by the 2025 Budget Speech.

ANC is considering abandoning VAT increase

Briefly News reported that the ANC met with the DA to discuss a way forward regarding the budget.

Read also

EFF files papers to challenge implementation of budget vote, SA weighs in

The DA voted against the VAT increase, adding more strain to the relationship between the two biggest parties in the GNU.

A senior ANC member admitted that the party may have to abandon the Value-Added Tax (VAT) hike as the party failed to earn the support for it.

Source: Briefly News