By 
Treasury will today defends itself at the Western Cape High Court against the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) who are opposed to the VAT increase that will take effect from 1 May 2025.
The parties argue that the VAT increase will affect the poor negatively and small businesses, as consumers will cut down on their spending, which in turn will affect the profitability of small businesses and will result in businesses downsizing, many will lose their jobs as a result of the VAT increase.
The EFF has also called on Treasury to tax the rich instead of a blanket approach in VAT hikes; furthermore, that Treasury can increase corporate tax than to increase VAT that will adversely affect the poor and the working class.
The ANC managed to garner enough voter support from small parties like Action SA, Rise Mzansi, the Patriotic Alliance (PA) amongst others to push the proposed financial framework through. Reacting to this, the DA and the EFF filed court papers to reverse or prevent the VAT increase on 1 May 2025.
The matter is currently underway in court.
