A recent court ruling confirms that only Parliament has the authority to change tax rates in South Africa.
The judgment was delivered after a legal challenge brought by the Democratic Alliance, questioning whether the Finance Minister could alter tax rates before the members of Parliament approve the national budget.
The ruling affects how tax decisions are made and gives Parliament 12 months to amend the legislation.
The court found that allowing the Finance Minister to change tax rates before Parliament approves the budget is unconstitutional.
This means tax increases or decreases must be approved by Members of Parliament first.
The case followed controversy surrounding a Value Added Tax (VAT) increase in 2025, which delayed the delivery of the national budget.
According to the ruling, the Constitution gives Parliament the power to make or change laws related to taxes.
Therefore, any decision that affects tax rates must go through the proper parliamentary process.
The Democratic Alliance which brought the application to court welcomed the decision and said it strengthens democratic oversight and accountability in government financial decisions.
The judgment also gives Parliament a period of 12 months to rectify the legislation so it complies with the Constitution.
During this time, lawmakers will need to review and amend the rules that previously allowed the Finance Minister to make temporary changes to tax rates before approval by Parliament.
This ruling is expected to have an important impact on how future budgets and tax policies are handled in South Africa.
By confirming the Parliament’s authority, the court has reinforced the principle that elected representatives must have the final say on decisions that affect the country’s tax system and public finances.
Sub-Editor : Thibela Thandeka
