Note to Editors: Please find a soundbite by Cllr Belinda Kayser-Echeozonjoku here
The Democratic Alliance (DA) in Johannesburg is deeply alarmed by the devastating impact of the VAT increase on our city’s residents. Pushed through by the ANC, Patriotic Alliance, ActionSA, and other parties in Parliament, this VAT hike from 15% to 15.5% may seem minor on paper but in reality, it will cost South Africans billions with no guarantee of improved services.
This comes as residents are already being asked to comment on a new round of tariff increases through the City’s public participation process. The VAT increase is just the tip of the iceberg.
From 1 May 2025, Johannesburg residents will face a 3.3% increase in municipal tariffs (excluding zero-rated property rates). Then, from 1 July 2025, massive hikes will hit already struggling households:
- Water & Sewer: 13.9% + VAT;
- Refuse Removal (Pikitup): 6.6% + VAT;
- Electricity: Between 12.74% and 18.3% + VAT; and
- Property Rates: 4.6% (zero-rated)
For a household earning R7,600 per month, this means at least R406 more in expenses, money that could have gone towards food, transport, or hygiene products.
All of this while services continue to crumble:
- Constant water and electricity interruptions;
- Burst pipes and sewage overflows left for days;
- A billing system in chaos, with unresolved errors; and
- A broken indigent register that ignores the most vulnerable.
You cannot fix a broken city by taxing people into poverty. You fix it by fixing the government. That means rooting out cadre deployment, appointing qualified professionals, and restoring functional service delivery.
As Joburg residents take part in IDP sessions, we call on every household to speak out and reject these unjustified and unaffordable increases.
The DA stands firmly with residents. We will continue to fight corruption, expose mismanagement, and hold this coalition administration to account because Joburg deserves services that they pay for.