Tshwane DA says no to 'excessive' rate increases

The DA in the City of Tshwane has called for a ratepayer-friendly budget that will cushion its residents from rising costs of living.

This comes as the city's administration wants to bolster revenue collection and take steps to improve the city's financial position in its upcoming 2025/26 budget with huge increases in rates.

The DA believes the council ought to do everything in its power to relieve the excessive burden on South Africa's taxpayers.

Caucus spokesperson Jacqui Uys insists decision-makers must trim their sails to what consumers can afford.

“South Africa has endured more than a decade of negligible economic growth. While prices have continued to go up, incomes have stagnated. South Africa today has the same per capital GDP than it had in 2008,” she said.

“Municipalities taxes and service charges also contribute to the pressure on consumers. Part of the problem is that municipalities must implement expensive and ineffective national legislation, such as preferential procurement.”

Instead, Uys says the city should set its sights on tax-neutral revenue raising measures, such as the rollout of smart prepaid electricity meters that minimise theft and waste. 

“This will enable consumers to budget for what they consume. We can explore the digitisation of billing disputes so as to ensure that the city takes credit control measures based on accurate information, and having taken into account disputes within a reasonable period of time,” she said.

In addition, the caucus spokesperson named the possibility of public-private partnerships that can source private sector expertise and capital for the upgrade of service infrastructure, which will in turn reduce distribution losses such as leaks and theft.

The DA highlighted three risks which could worsen the affordability crisis in the capital city:

• the new property valuation roll;
• an access charge for electricity; as well as
• a city cleaning levy.

Uys believes these could not come at a worse time for residents.

“Tshwane will increase its income from property rates significantly. Under the Municipal Property Rates Act, a municipality must complete a general valuation. The city will also consider a network access charge for electricity in line with a new Nersa-approved tariff structure, with the valuation roll being for the purpose of levying property rates.

“Illegal dumping is an ongoing problem in the city of Tshwane and the city’s solution for this is the introduction of a new tax, the city cleaning fee,” she said.

Uys cautioned against these proposals, saying 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, and will bring considerable relief to all property owners. The city should also consider exempting a portion of the value of business and agricultural properties from property rates.”

She called for a 0% increase on the tariff charged for each of the rateable property categories when compared to the previous financial year and no new taxes to be introduced.

“Poorer households are already paying 5%-10% of their monthly income on having bins lifted, it is also these same households that will be hit hardest with the introduction of a new electricity tariff. 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.”

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