The Western Cape High Court witnessed fiery exchanges as Economic Freedom Fighters (EFF) legal representative Advocate Tembeka Ngcukaitobi launched a scathing attack on Finance Minister Enoch Godongwana, accusing him of misleading the public about the controversial VAT increase in the 2025 national budget.
In a dramatic court session, Ngcukaitobi alleged the minister acted dishonestly by suggesting the 0.5% VAT hike – announced on 12 March 2025 – remained negotiable when administrative actions allegedly showed it was already implemented. “The minister lied to South Africans about the reversibility of this decision,” charged Ngcukaitobi, describing the process as “irrational and lacking transparency” due to insufficient public consultation.
The EFF and Democratic Alliance (DA) have formed an unlikely alliance to legally challenge the tax increase, arguing it violates GNU principles of inclusive governance. The opposition parties claim the hike disproportionately burdens low-income households already grappling with soaring living costs and unemployment.
The EFF has branded the policy “economic violence against workers,” while the DA criticized it as “fiscally lazy governance.” Godongwana maintains the increase is necessary to fund essential services and address South Africa’s R75 billion budget shortfall.
Legal observers note the case represents a critical test for the GNU’s stability, with the court’s pending decision potentially impacting:
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The legitimacy of the VAT increase
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Future budget consultation processes
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Opposition cooperation against ANC-led policies
Political analyst Lebohang Mokoena told News24: “This litigation transcends tax policy – it’s becoming a referendum on the GNU’s decision-making credibility. A ruling against government could embolden opposition forces.”
The National Treasury faces mounting pressure to disclose its contingency plans should the court invalidate the VAT adjustment. With judgment expected within weeks, all parties await a precedent-setting decision that may reshape South Africa’s fiscal and political landscape.
