Finance Minister Defends Fiscal Policy Decisions in Court Affidavit Amid Legal Challenge

Pretoria, April 2025 — Finance Minister Defends VAT Reversal in Court Filing

South Africa’s Finance Minister has defended the government’s fiscal decisions, including the reversed VAT hike, in a court affidavit addressing a legal challenge from civil society groups. The affidavit, released via the National Treasury, argues that the VAT proposal was a temporary, lawful measure aimed at stabilising finances and funding services.

The Minister cited consultations with Parliament and legal compliance as grounds for both the initial VAT increase and its subsequent reversal. He also explained the withdrawal of budget bills to revise spending plans following a projected R75 billion revenue shortfall.

The government, he noted, remains committed to protecting vulnerable groups and ensuring service delivery amid fiscal pressures. The case continues, with civil society calling for more transparency and public involvement in budget processes.

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