South African Tax Lawsuit Testing Ruling Alliance Goes to Court

South Africa’s High Court on Tuesday heard an application filed by two political parties that seeks to stop a proposed tax hike — a case that threatens to fracture the nation’s coalition government.

The court reserved judgment in the lawsuit filed by the Democratic Alliance and the Economic Freedom Fighters to interdict the authorities from raising the value-added tax rate — currently at 15% — by half-a-percentage point from May 1. It expects to deliver its ruling by April 29.

“We oppose a bullying budget that will lead to more young people losing hope when they realize they will be ...