VAT JUDGMENT RESERVED

THE Western Cape High Court on Tuesday reserved judgment as the GNU parties looked to block 1 May’s VAT increase. 

The Democratic Alliance (DA) and the Economic Freedom Fighters argued that the announcement of the 0.5 increase by Finance Minister Enoch Godongwana is unconstitutional. 

They say that the Constitution does not permit Parliament to delegate the power on decisions regarding tax to its executive.

Advocate Mahlape Sello, representing Godongwana, said the claims of unconstitutionality on Godongwana’s power to increase Vat were non-existent.

She also said while VAT will be increased at the start of next month, it was subject to an eventual decision by Parliament.

She stated: “Our constitutional provision allows the Minister to make necessary adjustments, subject to parliamentary oversight.”

After all parties were heard, Judge President Nolwazi Mabindla-Boqwana said: “We do understand that it is a complex issues but it must be decided as soon as possible. We will do our best to give judgment at the latest on the 29th, which is next week Tuesday. 

Mabindla-Boqwana added that the parties would be notified if a judgment will be issued earlier.