EFF Challenges Budget Process, Demands Reset on VAT Increase
Political Party Takes Legal Action Against Controversial Tax Proposal
The Economic Freedom Fighters (EFF) has escalated its opposition to South Africa’s proposed VAT increase by filing supplementary court papers in the Western Cape High Court. The move comes as part of the party’s efforts to intervene in the legal challenge regarding Parliament’s adopted fiscal framework and revenue proposals.
This legal action follows Finance Minister Enoch Godongwana’s unexpected reversal of the planned VAT increase, which was announced by the National Treasury late Thursday night. The controversial tax hike would have raised VAT from 15% to 15.5% starting May 1, with a further increase planned for April 2026.
Related: DA files supplementary affidavit to block the proposed VAT hike
Constitutional Concerns Raised Over Budget Process
In their court submission, the EFF expressed serious concerns about the conduct of parliamentary officials, accusing them of compromising the legislative process through partisan politics. The party maintains that South Africa currently lacks a lawful budget, arguing that the fiscal framework violates constitutional requirements.
“The only legitimate and practical way forward is a full reset of the 2025 budget process to re-establish constitutional compliance and fiscal legitimacy,” the EFF stated in their filing.
Related: EFF calls for ‘apartheid tax’ counter instead of VAT hike
SARS Commissioner Faces Scrutiny Over VAT Implementation
The EFF has also challenged South African Revenue Service (SARS) Commissioner Edward Kieswetter regarding the tax authority’s handling of the VAT rate adjustment. In an urgent letter, EFF National Chairperson Nontando Nolutshungu criticized SARS for creating confusion by allowing two different VAT rates to operate simultaneously.
“This reckless allowance not only sows confusion among vendors and consumers but also creates fertile ground for exploitation, price manipulation, and criminality,” Nolutshungu wrote.
Questions Over Legislative Authority
The party has demanded clarification on how SARS could issue binding instructions to VAT vendors without completed legislative processes. The EFF warned that SARS risks undermining public trust by acting on executive announcements rather than properly enacted legislation.
Related: Budget 3.0 not unexpected, possible decrease in social grant increase
Finance Minister’s VAT Reversal
Minister Godongwana’s reversal of the VAT increase follows significant public and political opposition. The National Treasury confirmed that legislation would be introduced to formally maintain the current 15% VAT rate.
Call for Parliamentary Integrity
The EFF has called for Parliament to prioritize constitutional obligations over political considerations, emphasizing that legislative authority resides with the National Assembly rather than the Cabinet. The party advocates for transparent governance that serves all South Africans, particularly vulnerable groups.
More on this story: Treasury reverses proposed VAT hike, will remain at 15%