DA heading to court to challenge passing of budget fiscal framework, VAT hike

CAPE TOWN - The Democratic Alliance (DA) will head to the Western Cape High Court on Thursday morning to challenge the passing of the budget fiscal framework and VAT increase.

This follows Wednesday's adoption of the fiscal framework and revenue proposals by the National Assembly, where 192 MPs voted in favour of the framework, with 182 voting against its adoption.

The DA's court filing will be led by federal council chairperson, Helen Zille, and federal council deputy chairperson and deputy finance minister, Ashor Sarupen.

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The DA said that Tuesday's meeting of Parliament's finance committees was not compliant with the standing rules of Parliament, in that the fiscal framework was not put to the committee to approve or reject.

The party said that ActionSA's proposal during the meeting was taken as adopted without the other tabled amendments being considered.

This "legal shortcoming", according to the party, was carried forward into the National Assembly on Wednesday, when it adopted the fiscal framework.

DA leader John Steenhuisen: "ActionSA did not get a deal. VAT will come in on the 1st of May unless it is legally challenged."

The DA's court challenge will rest on two key aspects.

The first is the procedure of the finance committee on 1 April to consider and approve the fiscal framework. The second aspect is the constitutionality of certain revenue collection and expenditure measures becoming binding through a speech by the finance minister, without Parliament's consideration.