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Friday, September 5, 2014

DA questions the Mayor on the impact of tax increases on rate payers

DA questions the Mayor on the impact of tax increases on rate payers



The DA in the Mbombela Council have questioned the Mayor of the Mbombela Local Municipality Cllr Sibusiso Mathonsi, asking him to indicate to council the impact that the recent increase in municipal
rates and taxes has had on rate payers.

The Mayor must indicate the increase in rand value that the average household and business are paying more since the inception of new increases on the 1st of July.

This question comes after DA Councillors received numerous complaints from residents and small businesses indicating dramatic increases in their monthly rates and taxes to the Municipality.
 The largest contributing factor seems to be the municipality’s valuation roll.  Property values re-assessed for the period 2014-2018.
In some instances property value has increased with 100% or more resulting in an automatic increase in property tax to the municipality.

Furthermore, municipal rates have increased with an average 7.8% for the 2014/2015 financial year. Small businesses are suffering from a negative impact on their profitability, and this coming during an already tough economic climate. Cash strapped households who are already struggling to manage their budgets, and adversely affected by the increases.

DA Councillors expect the Mayor to clarify what the impact is that the increase in rates and tariffs has had on rate payers and whether these increases are realistic.  884 residential households, 221 commercial properties and 78 agricultural properties put forward official queries to the Mbombela Local Municipality regarding the increase in their property evaluation and are awaiting feedback.

The DA is concerned that rate payers taken for granted and expected to accept the increases whilst not receiving valued service delivery in return. The DA in Council will keep putting pressure on the Mayor to ensure that the Mbombela Municipality held to account for their financial affairs. Wasteful and fruitless
expenditure must be stopped.


The DA will insist that the revenue base of the Mbombela Local Municipality  increased to lesser the burden that current rate payers are carrying.

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