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VAT hike goes to court

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By Simon Nare

A showdown over value-added tax is looming in the Western Cape High Court on Tuesday, with the Democratic Alliance dragging Finance Minister Enoch Godongwana to court to interdict the increase from taking effect on 1 May.

The DA and the Economic Freedom Fighters have formed an unlikely team to stop the minister from hiking VAT after the adoption of the budget framework on 3 April in the National Assembly.

Both parties have argued in court papers that the process followed was unprocedural and, therefore, the report should be set aside and declared null and void.

But Godongwana hit back in responding papers, saying the two parties have premised their arguments on the wrong interpretation of the law and, therefore, their cases should be dismissed.

Tuesday’s hearing will deal with the interdict to put the brakes on the increase.

The DA’s heads of argument say that there is

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