Overview
- Section 7(4) of the VAT Act was declared unconstitutional for granting the minister unfettered discretion to raise or lower a national tax.
- The judgment highlights that ministerial changes can take effect immediately for up to 12 months, with VAT collected in that period effectively nonrefundable even if Parliament later rejects the change.
- The court suspended the declaration of invalidity for 24 months to allow a legislative remedy and referred the order to the Constitutional Court for confirmation.
- The Democratic Alliance brought the case after a proposed 1 percentage point VAT increase announced in March 2025, which was later withdrawn; the court dismissed related relief as moot.
- Finance Minister Enoch Godongwana and SARS commissioner Edward Kieswetter opposed the challenge, while the DA and EFF welcomed the ruling as reinforcing parliamentary control over taxation.