A court ruling has effectively halted Finance Minister Enoch Godongwana's attempt to unilaterally increase the Value-Added Tax (VAT) rate. The Democratic Alliance (DA) brought the legal challenge in 2025 following Godongwana’s initial effort to raise VAT from 15% to 15.5% during the presentation of his first national budget.

The DA argued that the Minister lacked the constitutional authority to implement such a change without proper parliamentary process. The court appears to have sided with the DA's position, preventing the VAT increase from taking effect. Details of the court’s specific reasoning are still emerging, but the decision represents a significant check on executive power regarding fiscal policy.

This case highlights the ongoing debate surrounding the balance of power between the executive branch, particularly the Ministry of Finance, and the legislative branch, Parliament, in South Africa. VAT is a broad-based consumption tax that affects a wide range of goods and services, and any increase can have a significant impact on consumers and businesses. The DA's successful legal challenge underscores the importance of parliamentary oversight in financial matters and could set a precedent for future attempts to implement tax changes without full legislative approval.