The Western Cape High Court has issued a ruling to officially halt the planned rise in South Africa’s VAT rate on 27 April 2025.
A ruling has resolved a disagreement between the two largest parties in South Africa’s coalition government over a revenue-raising measure.
“The Democratic Alliance, which brought the case, stated that the court ruling confirms that any increase in the VAT rate must receive formal parliamentary approval before implementation, and invalidates the improper backing that was given to the hike by several groups.”
Earlier, South Africa’s Ministry of Finance announced that the Minister of Finance would soon introduce the Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Rates Bill) on 24 April 2025. The bill proposed maintaining the Value-Added Tax (VAT) rate at 15% from 1 May 2025, reversing the 0.5% VAT increase that had been announced in the March Budget.