VAT increase suspended by high court

The Western Cape High Court handed down a court order on Sunday that suspends the 0.5 percentage point VAT increase announced by finance minister Enoch Godongwana, pending the passing of legislation regulating the VAT rate by parliament or the final determination of whether the VAT Act is constitutional or not. This applies both to the 0.5 percentage point VAT increase due to come into effect on May 1 and the second 0.5 percentage point increase due to come into effect on April 1, 2026. Godongwana agreed to the suspension and to an out-of-court settlement which was made an order of court. Phemelo speaks to EFF Senior Researcher Dr Gumani Tshimomola and SAFTU General Secretary, Zwelinzima Vavi.