South African Court Blocks Proposed VAT Hike

A South African court has ruled to suspend the proposed hike in the country’s value-added tax (VAT) rate, halting a planned 0.5% increase set to take effect on May 1. The decision resolves a dispute within the country’s coalition government, with the Democratic Alliance party arguing that the VAT increase was unlawfully supported without proper parliamentary approval. Finance Minister Enoch Godongwana confirmed that the increase would not proceed, and the court’s ruling mandates that any future VAT changes be approved by parliament. The ruling sets the stage for a revised budget, and Parliament will now review the fiscal measures, ensuring a more transparent legislative process.

Bloomberg