By Simon Nare
The DA has launched a multi-pronged court challenge to the budget as passed by Parliament on Wednesday through a vote, with the party arguing that the fiscal framework that adopted the Value Added Tax was invalid and unconstitutional.
The DA said it was challenging the resolution of the Standing and Select Committees because the process followed to adopt the reports was unlawful and wants the reports declared null and void.
DA Federal Council chairperson Helen Zille told journalists in Cape Town on Thursday that the party also wanted to interdict the implementation of the VAT increase, which was set to come into effect on 1 May 2025.
In the court papers that were filed in the Western Cape High Court on Thursday, the DA argued that the process to adopt the budget was unprocedural in that the two committees did not vote on the wording of the report but rather went through clause by clause without amending as the law provided.
This was done without a final version that set out a clear statement that was put to the committees for final adoption or amendment. The clear statement would have clarified whether the report was accepting or amending the fiscal framework and revenue proposals.
It further argued in the papers that the reports did not comply with Section 8 (4) and the committees ought to have amended the reports themselves and not merely accepted them while dealing with the issue of the VAT hike.
Thirdly, the adoption was the product of material error of law in that members of the committee acted under misapprehension that recommending the reconsideration of the VAT increase would result in the hike being halted.
“The reports are therefore unlawful and invalid. The resolution of the National Assembly and the National Council of Provinces adopting these reports are unlawful and unconstitutional. They must be declared invalid and set aside.
“If the budget process continues it will be tainted by this illegality. South Africa’s economy cannot afford uncertainties about whether its budget was adopted lawfully or not. The matter needs to be resolved swiftly so that a lawful process can be undertaken,” the party argued in its papers.
Addressing reporters outside court before filing the papers, Zille vowed that the party was not going to take the matter lying down and accused the ANC of negotiating with parties who were not part of the Government of National Unity to get support to pass the fiscal framework.
She revealed that the party has a series of plans to stop the VAT hike and was determined to see the plans through.
Zille said the DA had been negotiating with the ANC for weeks and was on the verge of reaching an agreement until the ANC went to smaller parties.
“Our plan B is to take this matter to court. Our plan B is very strong and solid. This morning I signed these papers. These are crucial papers that are going to really change the face of how decisions are taken in Parliament and change the decision to increase your VAT,” she said brandishing the papers in front of cameras.
Zille said the court action was in two parts. The first was to get the adoption of the reports declared null and void.
The second part was to get Section 7.4 of the VAT Act declared unconstitutional because it gave the finance minister the power to force a VAT increase without taking it through Parliament and without the need to get the fiscal framework and other legislation passed in Parliament.
“So, it gives the minister legislative powers to pass laws simply by making a statement and we know that is unconstitutional and we want the court to declare it,” she said.
Zille said the party had hoped the DA and ANC would have settled the matter without approaching the courts, but the ANC’s backroom deals with non-GNU members had forced its hand.
She announced that the party’s Federal Council would meet to decide on the way forward.
Responding to President Cyril Ramaphosa’s leaked voice note in which the president said the DA has expressed itself outside the GNU by not supporting the budget, Zille said it was the ANC that was negotiating in bad faith. This was because it had turned to other parties while in discussions with the DA about finding an agreement on the budget.
She also said it was likely that the ANC had made promises to ActionSA for its support and it would find out the hard way that the ANC could not be trusted.
INSIDE POLITICS
