The High Court in Cape Town is expected to hear an urgent application today aimed at halting the government's proposed increase in Value-Added Tax (VAT), a move that has ignited fresh political tensions within the Government of National Unity.
The application has been brought jointly by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF), two parties usually at ideological odds, but now aligned in their opposition to the VAT hike. They argue that the increase—announced as part of the revised fiscal framework—is unlawful and should be suspended pending a full judicial review.
The legal challenge comes amid growing divisions within the coalition government. The DA has been vocal in its opposition to the 2025 Budget, warning that it disproportionately affects lower-income South Africans and undermines fiscal transparency. Its resistance has fueled speculation over the stability of the Government of National Unity, which could face significant strain if internal negotiations break down.
Observers say today’s court proceedings may have broader implications beyond the immediate tax issue, potentially reshaping the political dynamics between coalition partners and testing the durability of South Africa’s multi-party governance experiment.
A ruling in favour of the DA and EFF could derail the government’s current fiscal plan, while a dismissal may deepen existing fractures within the coalition.
The matter is being closely watched by economists, civil society groups, and political analysts alike, as the outcome could impact both the country’s economic direction and the political cohesion of its ruling alliance.