Civil Society calls for freeze of rates and taxes
Civil Society organisation Dear SA has called on government to put a freeze on municipal increases in rates and taxes.
Dear SA has written an open letter to Finance Minister Tito Mboweni, National Treasury, the South African Local Government Association (SALGA) and the Department of Co-operative Government and Traditional Leaders (CoGTA) to do so until the "economic downturn is behind us".
Managing Director (MD) of Dear SA, Rob Hutchinson, says rates and taxes should be halted until South Africa is restored to pre-Covid-19 levels of employment and economic activity.
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"The deteriorating financial position of municipalities is in plain sight. There are declining service levels, potholes unrepaired for years, sewage spills into public spaces and rivers, and municipal debtors’ books that appear increasingly uncollectible. R18 out of every R100 now goes uncollected, against a target collection rate of 95%.
"It is against this background that we urge Minister Mboweni, National Treasury, SA Local Government Association (SALGA), and the Department of Cooperative Governance and Traditional Affairs (CoGTA) to impose an immediate freeze on rates and tax increases at the local government level.
"South Africans are already over-taxed. To continue to allow municipalities and metros to award themselves generous pay increases is to encourage resentment and disobedience – as that will surely follow."
