MBABANE:The Western Cape High Court has suspended the 0.5% Value Added Tax(VAT) increase that Finance Minister Enoch Godongwana announced in his second budget speech on 12 March 2025, the Mail & Guardian reported on Monday.
The High Court said on Sunday that Godongwana’s 0.5% point VAT rate adjustment is “suspended pending the passing of the legislation regulating the VAT rate or the final determination of part B of the Democratic Alliance’s case, or whichever comes first”.
On another note, eSwatini Parliament rushed to approve the VAT increase with a similar percentage after the South African Government announced a proposed increase.
But eSwatini Finance Minister Neal Rijikernberg subsequently announced that, the country will wait for South Africa to implement the increase first and then, do the same to enhance the convenient movement of goods within the Border Gates.
The VAT increase in eSwatini that will dig deeper into the pockets of emaSwati, was supported by Hhukwini Member of Parliament(MP) Alec Lushaba among other MPs, eSwatini and South Africa are both members of the South African Customs Union(SACU).
Western Cape High Court suspends Value Added Tax(VAT) increase, eSwatini waiting for South Africa to implement after Parliament improved increase(pic:Polity).