The Democratic Alliance (DA) welcomes the judgment of the Western Cape High Court declaring section 7(4) of the Value-Added Tax (VAT) Act unconstitutional, confirming our argument that the power to determine taxes cannot be delegated to the executive.
The DA has succeeded in upholding the law that only Parliament, as the representative legislature of the people of South Africa, can change the VAT rate through due process, and that the Minister of Finance cannot raise VAT on their own.
The court found that allowing the Minister of Finance to unilaterally alter the VAT rate through a budget announcement amounts to an impermissible delegation of legislative authority. Taxation powers, the judgment affirmed, must remain firmly in the hands of Parliament as the elected representatives of the people.
This ruling vindicates our constitutional challenge and reinforces that there can be no taxation without proper parliamentary oversight. It is a case of “No taxation without representation” – Parliament is the representation of voters, and must be the decision-maker on taxation.
The court confirmed that section 7(4) lacks clear limits governing how the VAT rate could be altered, which undermines the constitutional balance between executive acts and parliamentary supremacy.
While the court suspended the declaration of invalidity for 24 months to allow Parliament time to correct the defect in the law, the principle is now clear: the executive cannot hold unchecked authority to adjust a national tax without Parliament.
The DA brought this case to defend the constitutional role of Parliament and to ensure that decisions affecting the tax burden on millions of South Africans are taken transparently and democratically.
The judgment strengthens accountability in fiscal governance and ensures that any future changes to VAT must occur through proper legislative processes.
The DA will continue to fight on behalf of South Africans against attempts to bypass democratic oversight in decisions that directly affect the cost of living.