CAPE TOWN – The Western Cape High Court has declared parts of the Value-Added Tax (VAT) Act unconstitutional and invalid.
The ruling confirms that only Parliament, and not government, holds the right to change tax rates.
It found that allowing the Finance Minister to alter the rate before MPs approve the budget is unconstitutional.
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The Democratic Alliance brought the application and is welcoming the judgment.
It came after a VAT increase last year delayed the delivery of the budget.
Parliament now has 12 months to amend the legislation.
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