# Parliament argues the 0.5-percent VAT hike set to commence next week is lawful, pending parliamentary amendment. The DA and EFF are challenging the increase, calling it unconstitutional and claiming it sidelines Parliament’s taxing powers. Judgment has been reserved. Appearing before the High Court in Cape Town, Parliament’s lawyer, Priscilla Pillay, defended the hike under the VAT Act, which allows the Finance minister to temporarily adjust VAT, subject to Parliament’s approval within 12 months:
The 0.5% VAT hike is lawful pending parliamentary amendment [SOUND]
ENG PillayOnAmendment