EFF believes VAT judgment will bolster its legal fight against fuel levy

The Economic Freedom Fighters believes the Western Cape High Court’s judgment on value-added tax (VAT) will bolster its case against the fuel levy.

The court has found the powers accorded to the finance minister to unilaterally set the VAT rate unconstitutional and invalid.

While the DA brought the case against Finance Minister Enoch Godongwana during last year’s budget process, the EFF joined the case.

It said the ruling reaffirms the party’s long-held view that the VAT rate should only be altered through a resolution of Parliament.

The high court said the DA’s case has vindicated an important constitutional principle that the power to impose, reduce or abolish taxes resides with Parliament.

ALSO READ: DA, EFF welcome court ruling against unilateral VAT powers of finance minister

The EFF said the judgment affirms the party’s position that there should never be taxation without representation, and the ability to increase taxes should not be determined by an individual.

The EFF is of the view that Godongwana has been misguided by his treasury officials, who the party believes pander to the World Bank and International Monetary Fund.

The party said the court’s ruling on VAT should support its case against the finance minister to increase the fuel levy in the final 2025 budget in an attempt to recoup some of the revenue he had hoped to generate through increasing the VAT rate in the first iteration of the budget.

After a 16-cent increase in 2025, this year the levy on petrol goes up by 9 cents.

The fuel levy is largely used to fund road accident victims.

The EFF has proposed amendments to the Public Finance Management Act that would also require international loans to be approved by Parliament.