DA takes legal action against VAT hike

The Democratic Alliance (DA) has filed papers in the Western Cape High Court to challenge the legality of the 2025/26 National Budget process, specifically the Value-Added Tax (VAT) increase set to take effect on May 1.

In a statement on Thursday, DA Federal Council Chairperson Helen Zille confirmed the move, citing concerns over the impact on South Africans’ cost of living.

The DA argues that the VAT hike was unlawfully introduced, as the Finance Minister’s announcement in his Budget speech may be unconstitutional. If the court finds in their favor, the VAT increase could be deemed non-binding.

Zille emphasised that the party has consistently opposed the VAT hike without meaningful economic reforms to boost growth.

The DA claims the VAT hike will devastate South Africans already struggling financially. By voting for the Fiscal Framework, parties like ActionSA and the Inkatha Freedom Party (IFP) have effectively supported the tax increase, the DA says.

The court will now review the DA’s challenge. If successful, the interdict could stop the VAT hike implementation.