Parliament defends VAT hike, court reserves judgement
Parliament has defended the upcoming VAT hike as lawful, saying all due processes ahead of its adoption were followed.
It has been facing off against the DA and the EFF in court.
The parties are challenging the increase, contained in this year's budget, arguing it was unconstitutional and sidelined Parliament's taxing powers.
The Western Cape High Court has reserved judgement in the case until next Tuesday.
Parliament's lawyer, Priscilla Pillay, defended the 0.5% VAT rate hike on Tuesday saying that the VAT Act allows Finance Minister Enoch Godongwana to temporarily adjust VAT, subject to Parliament’s approval within 12 months.
READ: DA tells court VAT hike was pushed through illegally
" The report was put to the meeting. Members of the meeting went through that report clause by clause, and there was ultimately a vote in relation to the adoption of that report. That vote was carried by the majority of members."
The DA and the EFF filed the urgent application to halt the increase.
Advocate Tembeka Ngcukaitobi, who is representing the red berets, has told the court there was a clear violation of constitutional rights.
"The 0.5 percentage increase is a regressive measure. It exacerbates inequality. The problem is that the answering affidavit of Parliament avoids the topic altogether. You think maybe the minister will give a substantive justification based on the equality consents, but you also find that the minister does not in fact justify the 0.5% other than by saying we need additional revenue to cover a number of other government spending requirements."
