DA’s ConCourt bid to strip finance minister of VAT powers to be heard
The DA is seeking that the court declares the VAT act of 1991 invalid.
The Democratic Alliance (DA) is set to appear before the Constitutional Court on Thursday in an effort to invalidate the power of the finance minister to unilaterally determine the Value Added Tax (VAT) rate. The party argues that while the Constitution grants this authority to Parliament, a section of the VAT Act of 1991 grants the minister the power to set VAT without the necessity of significant parliamentary support.
The DA is pushing for the court to rule the VAT Act invalid and urge Parliament to amend its laws to ensure that the power to set VAT is solely vested in Parliament and not the executive branch. George Michalakis, the DA's Parliamentary Leader, emphasized that the party is fighting for a fair deal for South Africans, preventing the finance minister from unilaterally imposing a 2% VAT hike, which could adversely affect numerous impoverished households.
Michalakis stated that the decision regarding taxation should remain with Parliament, and this case represents a victory in the Western Cape High Court, which the DA seeks to extend to the highest constitutional court on behalf of all South Africans.
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