The Democratic Alliance (DA) has escalated its fight against the impending Value Added Tax (VAT) increase, filing a supplementary affidavit with the Western Cape High Court in a bid to prevent it from coming into effect on May 1. This move follows alarming claims that Finance Minister Enoch Godongwana purportedly sought to negotiate a settlement regarding the VAT hike that has yet to materialise.
DA Federal chairperson Helen Zille announced on Saturday that crucial legal developments necessitated this supplementary filing. “The supplementary affidavit is necessary because, despite the developments of the past week, the VAT increase will still come into effect on 1 May, unless the court specifically issues an order to prevent this,” Zille articulated in a statement. She underscored that only a court order could halt the VAT increase after the fiscal framework—officially including the VAT rise—was ratified by both the finance portfolio committee and Parliament in early April.
In her remarks, Zille highlighted a statement from Godongwana made post-hearing regarding the DA’s application to interdict the VAT rise, alongside his advisement of a new bill intended to parliament aimed at revising the fiscal framework and eliminating the VAT increase. “However, this is not enough to prevent a VAT increase coming into effect on 1 May,” Zille continued, emphasising that the new bill remains unadopted in Parliament.
Legal representatives for the DA claim that Godongwana’s actions have not made the necessary legal adjustments to halt the VAT hike from being enacted. DA attorney Shannon Solomon noted that vendors, according to directives from the South African Revenue Service (SARS), are still expected to implement the VAT increase until May 15, creating potential chaos for businesses yet unprepared for such changes.
Further complicating the discourse, the MK Party has made headlines by filing a motion of no confidence against Godongwana in Parliament. This move is emblematic of a growing dissatisfaction over his handling of the VAT increase. MK spokesperson Nhlamulo Ndhlela stated the action stems from Godongwana’s “reckless mishandling” of the issue, which he argues has left markets reeling and has struck worry among small businesses and poorer communities alike.
The motion, however, raises questions due to its constitutional viability, as it permits only motions of no confidence directed to the Cabinet and the President. In response to escalating calls for Godongwana’s resignation, some party leaders, like EFF representatives, criticise him for failing to meet legal and constitutional obligations regarding the budget process.
Meanwhile, Build One South Africa leader Mmusi Maimane defended Godongwana on social media, asserting that calls for resignation lack foundation and stressing the importance of maintaining an uncaptured Treasury. Maimane remarked that the minister has actively engaged the public concerning VAT through discussions and public hearings, which should be acknowledged by all parties involved.