South African Court Declares Tax Act Unconstitutional, BD Says

A South African court declared that part of the Value-Added Tax Act which allows finance minsters to amend the goods tax is unconstitutional, Business Day reported.

The Democratic Alliance, the second-largest party in the so-called government of national unity, brought the application to the Western Cape High Court last year after Finance Minister Enoch Gogongwanaand the National Treasury proposed hiking the value-added tax rate by two percentage points to 17% over two years, a move the DA opposed.

The court gave the National Assembly 24 months to amend the VAT act, according to the Johannesburg-based newspaper.

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