South Africa: High Court hears challenge to VAT hike amid coalition tensions
The South African High Court considered a legal application brought by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) seeking to block the government’s proposed 0.5 percentage point irise in the value-added tax (VAT) rate, set to be implemented on May 1. The court has reserved judgment and is expected to deliver a ruling by April 29.
The case highlights growing friction within the 10-party coalition government, particularly between the DA and the African National Congress (ANC), the largest member of the alliance. The proposed VAT increase, which would raise the rate from 15% to 15.5%, has become a point of contention, with opposition parties arguing it would negatively impact households and deepen financial hardship.
The legal action reflects broader dissatisfaction with the current budget policy and has raised concerns about the stability of the coalition. Investor uncertainty has intensified amid speculation that the DA could exit the alliance, potentially opening space for more populist parties to influence government policy.
VAT/GST rates 2024 in Africa
| Country | Standard VAT/GST Rate | Reduced Rates |
| Algeria | The standard sales tax (VAT) rate is 19%. | A reduced rate of 9% applies to certain industries |
| Egypt | The VAT rate is 14% | 5%, 10% |
| Equatorial Guinea | The standard VAT rate is 15% | 6% |
| Ethiopia | The standard VAT rate is 15% | |
| Mauritania | The standard VAT rate is 16% | |
| Mauritius | The standard VAT rate is 15% | |
| Morocco | The standard VAT rate is 20% | 10% |
| Nigeria | The standard VAT rate is 7.5% | |
| South Africa | The standard VAT rate is 15% | |
| Tanzania | The standard VAT rate is 18% | |
| Tunisia | The standard VAT rate is 19% | 7%, 13% |
| Uganda | The standard VAT rate is 18% |