Outa calls on municipalities to reduce property rates during Covid-19 lockdown

The Organisation Undoing Tax Abuse (Outa) has called on South African municipalities to reduce property rates during the lockdown.

“The Covid-19 pandemic has had a significant financial impact on businesses and individuals and will continue to do so for several months to come. Municipalities around the country have the ability to assist South Africans financially by cutting or reducing property rates on their municipal bill,” said Outa's Julius Kleynhans.

He said the temporary relief Outa was petitioning for was contained in the Local Government Municipal Property Rates Act.

“Thousands of people have lost their jobs or a significant part of their income, and not all property owners can afford to keep paying property rates due to the unexpected and unprecedented economic fallout of Covid-19,” said Kleynhans.

He said the organisation had received calls from people who literally had to choose between keeping food on their tables or paying property rates.

He urged municipalities to legally assist by reducing property rates or giving temporary exemptions until the lockdown has been lifted.

“According to the Local Government Municipal Property Rates Act, municipalities have the mandate to bring relief to [their] residents by form of exemptions, reductions and rebates on property rates, as per section 15(1) and (2) of the act,” he said.

“This section expressly permits exemption and reductions within an area affected by a disaster within the meaning of the Disaster Management Act.”

He said anyone wanting to sign the petition can do so on the Outa website.