Democratic Alliance Challenges VAT Hike in Court, Claiming Unlawful Parliamentary Procedures

The Democratic Alliance (DA) is taking a stand against the recently approved 2025/26 National Budget, specifically targeting the controversial value-added tax (VAT) increase. Announced in a media release, the party has escalated its opposition by filing papers at the Western Cape High Court. The DA objects to not just the tax hike but the manner in which the budget was processed and passed through Parliament.

At the heart of the DA’s legal challenge are two fundamental issues. First, the party contends the procedural adherence during the Finance Committee's meeting on April 1, 2025, was flawed, as the Fiscal Framework was neither adequately discussed nor approved. Secondly, they are challenging the constitutionality regarding the enforcement of certain revenue and expenditure measures that were declared binding merely via a speech by the Finance Minister, bypassing essential parliamentary scrutiny and approval.

The assembly on the referred date saw the Finance Committee acknowledge one political party's proposal without consideration for other suggested amendments. This action, according to the DA, violates the standing rules of Parliament which demand comprehensive evaluation and decision-making on such critical matters.

Furthering their case, the DA criticized multiple political parties such as ActionSA, the ANC, alongside IFP, PA, GOOD, RiseMzansi, UDM, PAC, Al Jama-ah, and BOSA for their collective approval of the budget. According to the DA, this approval disregards the economic burdens the VAT hike would impose on South African citizens, demonstrating a disconnection from the immediate economic challenges and needs of the populace.

The implications of such a VAT increase, the DA argues, would be significantly detrimental, escalating the cost of living for South Africans already struggling under economic pressures. The party has been vocal in its opposition, proposing amendments aimed at fostering economic growth and job creation which were overlooked in the budget's final version.

As this legal challenge proceeds, the DA remains firm in its resolve to oppose what it perceives as irresponsible fiscal policy driven by the ANC, which they say will only deepen economic inequalities and social unrest.

This legal step by the DA underscores a significant confrontation on fiscal governance and parliamentary processes. The outcome of this challenge might not only affect the 2025/26 budgetary conditions but could also set a precedent for how legislative procedures are carried out in South Africa’s parliament in the future. The case will thus be keenly followed by various stakeholders, including economic analysts, other political entities, and the general public.