Finance Minister responds to VAT legal challenges

JOHANNESBURG - Finance Minister Enoch Godongwana has filed his answering affidavit to legal challenges to the VAT hike.

The Democratic Alliance and Economic Freedom Fighters filed applications to block the increase.

The Minister says the EFF's assertion that the VAT rate announcement is unlawful has no legal basis.

READ: New VAT comes into effect 1 May

He contends the proclamation has legal effect through the VAT Act.

Godongwana also clarifies that the fiscal framework is NOT legislation, but a Parliamentary resolution.

He says only an Act of Parliament can confirm or change his VAT rate adjustment.

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