Neelam Rahim | neelam@radioislam.co.za
3-minute read
25 April 2025 | 13:00 CAT

DA and EFF challenge VAT hike in urgent court bid, citing constitutional flaws and public harm. Image: Se-Anne Rall/IOL

In a rare show of unity, the Democratic Alliance (DA) and Economic Freedom Fighters (EFF) have launched a joint legal challenge at the Western Cape Division of the High Court to halt the Finance Minister’s 0.5% VAT increase scheduled for implementation on May 1st.

The opposition parties are not opposing the increase itself, but rather questioning the procedural legality behind its adoption. Speaking to Radio Islam International, legal expert Cameron Phillips stated, “The shake-up centres around the procedures involved in the adoption of the VAT hike, as well as constitutional issues surrounding the minister’s powers.”

The DA seeks to urgently suspend the adoption of the financial framework, arguing that the report was adopted without the proper acceptance of its recommendations. “The DA’s argument is that the resolution adopting the framework is fundamentally and constitutionally flawed,” Phillips explained.

Interestingly, the EFF’s application mirrors much of the DA’s legal reasoning, with some minor differences. The EFF intends to join as co-applicants, seeking further relief against the Finance Minister. Despite ideological differences, both parties agree that due process was not followed.

Key to the legal strategy is the request for an interim interdict. “To succeed, the DA and EFF must demonstrate a prima facie right, apprehension of irreparable harm, balance of convenience in their favour, and no alternative remedy,” said Phillips. He stressed the urgency of the matter, noting that the DA had contacted the minister prior to court action but received no response.

One of the central arguments is the potential irreparable harm to ordinary South Africans. “Given the economic climate, it’s clear that such a hike would cause irreversible damage to a large portion of the public,” warned Phillips.

As the court deliberates, the case underscores a growing demand for transparency and accountability in tax decisions. “The public has a right not to be taxed without representation,” Phillips concluded, highlighting a principle at the heart of the legal bid.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Cameron Phillips here.