By: Bright Ntuli
The Democratic Alliance (DA) has confirmed that legal representatives acting on behalf of Finance Minister Enoch Godongwana have approached the party with a proposal for an out-of-court settlement.
This pertains to the High Court case initiated by the DA, which sought to interdict the government’s planned increase in the value-added tax (VAT) rate.
In a related development, Minister Godongwana issued a statement announcing the reversal of the decision to raise VAT by 0.5 percentage points.
The increase, initially scheduled for 1 May 2025, would have been the first since 2018.
The proposed hike aimed to address a projected revenue shortfall of approximately R75 billion over the medium term .
The DA’s Federal Council Chairperson, Helen Zille, has indicated that the party will meet with a high-level delegation from the African National Congress (ANC) today to discuss the matter further.
