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Sun Dec 04 22:23:43 SAST 2016

Local government tax mooted

Olebogeng Molatlhwa | 2016-12-01 00:00:00.0
SA Local Government Association chairman Parks Tau.
Image by: Moeletsi Mabe/ The Times

SA Local Government Association chairman Parks Tau has suggested the idea of a local government tax.

Tau, speaking yesterday in a panel discussion on the second day of Salga's national conference in Sandton, said the tax could help bolster municipal revenues, which have been battered by nonpayment for services as a result of a sluggish economy and widespread unemployment.

Tau was aware the idea could ruffle taxpayers' feathers, saying municipalities needed to "find ways to participate in the tax regime" but this did not necessarily mean the creation of a brand-new tax.

He noted that this plan would stand a better chance of succeeding in municipalities with a sizeable tax base.

The idea of a local government tax - while very much still in its infancy - points to the policy proposals South Africa's local government sector intends to advocate in the next five years.

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