The Western Cape High Court has become the focal point of a heated legal and political debate, as proceedings commenced on Tuesday in a case aimed at halting the proposed increase in Value-Added Tax (VAT).
The Democratic Alliance (DA) and Economic Freedom Fighters (EFF) are jointly challenging the legality of the 0.5 percentage point hike, which was announced during the national budget address earlier this year. Both parties staged a protest outside the courthouse ahead of the hearing, drawing attention to what they describe as the detrimental impact the hike will have on ordinary South Africans.
DA MP Mark Burke voiced his party’s opposition, saying the increase is emblematic of a broader budget strategy that fails to consider the daily struggles of citizens.
“We are opposed to a bulldozing budget that will lead to more South Africans wondering why their house values continue to fall year after year,” Burke said. “We reject a bullying budget that will force young people to accept a future poorer than their parents, and a bleeding budget that will make commuting even more expensive in a job-scarce economy.”
The case is being closely monitored by economic analysts and civil society groups, with many warning that the outcome could have far-reaching implications for fiscal policy and coalition politics in the Government of National Unity.