Relocating to Cape Town? It could be expensive ...

Cape Town may be a sought-after holiday destination but it is becoming a taxing affair deciding whether to live in the Mother City.

Residents are facing a double-whammy rise in the cost of living‚ over and above other increases that will dent family budgets across the country.

South Africans are still coming to grips with a national fuel levy hike of 52c a litre‚ more electricity tariff increases and a hike in the VAT rate.

Capetonians have now discovered that the price they pay for water is likely to double in the next two years‚ despite residents having gone to great lengths to slash water use because of a crippling drought.

The city’s draft budget‚ tabled on Wednesday‚ proposes a 27% rise in water tariffs from July 1‚ a 30.45% increase in 2019 and a 22% rise in 2020/21.

Xanthea Limberg‚ mayoral committee member for water‚ waste and energy‚ said while consumers had cut back on water use‚ revenue collection had also dropped. Additional funds would also be needed to augment the city’s water supply.

And while residents were spared the controversial toll road drama that unfolded on highways in Johannesburg‚ they will not be able to dodge – if the provincial government gets its way – having to shell out more cash to pay for the upkeep of roads in the Western Cape.

The provincial government is considering the introduction of a provincial fuel levy – over and above the recently announced national fuel levy.

The Organisation Undoing Tax Abuse (Outa) warned that such a levy would have dire consequences for residents.

“The mere mention of an investigation into provincial fuel levies cannot and should not be tolerated‚” said Rudie Heyneke‚ Outa’s transport portfolio manager.

“Taxes and levies already make up an above-average portion of the existing fuel price. Any special tax introduced‚ approved and implemented gives government a foot in the door and increases on these are then just a matter of time‚” said Heyneke.

Outa said the national fuel levies were increased by a total of 52c a litre earlier in 2018. The total general fuel levy and Road Accident Fund (RAF) levy stands at R5.30 a litre of 93-octane petrol. “To fill up a 60l tank‚ motorists will pay R318 in fuel levies.”

The proposal has also been rejected by the provincial ANC‚ which warned that transport costs would rise as well as the cost of food.

“This extra price shock on top of the most expensive of all provincial vehicle licence tax fees in the country. Together with all sorts of parking fees‚ fines and tolls‚ this additional fuel tax will punish travellers and poor commuters most‚” said the party’s provincial finance spokesperson‚ Carol Beerwinkel.