JOHANNESBURG - Finance Minister Enoch Godongwana will have to wait a little longer to hear if he indeed has the power to unilaterally change the country's Value-Added Tax rates.
The Constitutional Court reserved its judgment in the matter last Thursday.
National Treasury alongside SARS asked the apex court to overturn an earlier ruling of the Western Cape High Court.
That decision, in a matter brought by the Democratic Alliance and the Economic Freedom Fighters, found Section seven, sub-section four of the Value-Added Tax Act unconstitutional.
It also gave Parliament 24 months to fix it.
But Treasury argues the High Court's ruling hinders, among other things, the Minister's ability to manage or respond immediately to fiscal pressures or revenue shortfalls.
The DA and EFF, however, are adamant the Minister does not have the power to announce changes to VAT prior to Parliament's approval.
It's unclear at this stage when the Constitutional Court will hand down judgment in the matter.
Editor’s note: In an earlier article, eNCA erred in not clearly stipulating the judgment handed down by the Western Cape High Court and the subsequent Constitutional Court challenge to the ruling. eNCA intimated that the Apex Court sitting would validate the previous ruling. Judgment in the Constitutional Court matter is still pending.