Note to Editors: Please find an English soundbite by Cllr Jacqui Uys here
Ordinary South Africans find themselves in an affordability crisis, where they have to choose between buying essential household items and paying utility bills.
The proposed budget tabled by the ANC-led government in the City of Tshwane not only aims to supplement its income from higher property tax due to a new valuations roll, but it also introduces a new tax in the form of a city cleansing levy. This will raise the burden on normal Tshwane residents and will have an adverse impact on especially poorer and middle-class households.
On Tuesday 25 March, the Democratic Alliance (DA) Tshwane Chief Whip, Ofentse Madzebatela, objected to the city’s proposed new tariff in the programming meeting in preparation for council. Residents are already under pressure, with regressive income tax increases as well as a looming VAT increase.
Jacqui Uys, DA Tshwane’s Spokesperson for Finance also wrote to the Mayor to ask that the Mayoral committee go back to the drawing board ahead of Thursday’s council meeting and rather cut expenditure on security companies and water tankers to avoid a city cleansing levy.
The DA’s proposal to ease the tax burden on Tshwane residents is:
- A 0% increase on the tariff charged for each of the rateable property categories when compared to the previous financial year – the city will already enjoy a significant bump in revenue from new valuations alone;
- Increasing the portion of the value of residential properties that are not subject to property rates from the current R150,000 to R450,000 – this is closer to the norm adopted by other metros. The city should also consider exempting a portion of the value of business and agricultural properties from property rates; and
- No new taxes to be introduced. The focus should rather be on law enforcement on both illegal dumping and theft of electricity as a way to fund the electricity model of the city.
Any government aspires to table a funded budget, but this cannot come at the detriment of the tax payers, the people of Tshwane are already overburdened with taxes and the DA will oppose this new tax.