# Finance minister Enoch Godongwana has confirmed that the 0.5-percentage point VAT increase will proceed as planned on the first of next month, despite the DA and EFF’s court challenges. In court papers, Godongwana argues the VAT hike is necessary to avoid cuts in spending on public services or more debt. He dismissed the DA’s claim the VAT Act is unconstitutional, as the law permits him to announce such increases, provided Parliament approves it. The case is set to be heard in the High Court in the Western Cape on Tuesday.
Minister Godongwana confirms VAT increase to take effect on 1 May despite political opposition