Major court battle looming over City of Cape Town rates
This legal challenge follows the North Gauteng High Court's recent decision to overturn a similar levy imposed by the City of Tshwane, declaring it 'invalid and unlawful.'
AfriForum successfully argued that Tshwane's R194-per-month fee amounted to illegal double taxation, violating both constitutional and municipal regulations.
Now, AfriForum is setting its sights on Cape Town's version of the charge, which came into effect on 1 July.
The group has instructed its legal team to initiate proceedings, calling the levy a 'fundraising ploy' that mirrors Tshwane's flawed approach.
Unlike Tshwane's flat-rate levy, Cape Town's cleaning fee is calculated progressively based on property values and applies to all property owners.
The City insists the charge forms part of its 'pro-poor budget,' which includes R40 billion in infrastructure investment over the next three years.
Officials maintain the levy is a necessary tool to fund core services and improve urban cleanliness.
However, critics argue the fee lacks a proper legislative basis and serves more as a revenue-generation mechanism than a targeted service fee.
The South African Property Owners Association (SAPOA) and the Cape Town Collective Ratepayers' Association (CTCRA) have both expressed strong opposition.
'This is not just about Cape Town,' said a CTCRA spokesperson.
'If this levy is allowed to stand, it sets a dangerous precedent for municipalities across the country to impose similar charges without transparent legal justification.'
In Tshwane's case, the court found the city had violated Section 229(1) of the Constitution and Section 74(1) of the Municipal Systems Act, which limit how municipalities can raise revenue.
AfriForum CEO Kallie Kriel argues that Cape Town's cleaning levy falls into the same constitutional trap.
'The City is using the levy as a disguised tax to plug budget gaps caused by mismanagement,' Kriel said.
'We believe the courts will agree.'
SAPOA has already filed for a judicial review of the levy, while the CTCRA is applying to join the proceedings as amicus curiae (friend of the court).
If the court rules in their favour, the City could be ordered to refund residents – mirroring Tshwane's outcome.
While Cape Town argues the fee is vital for maintaining essential services, opponents view it as a test case for municipal accountability and financial transparency.
The outcome could reshape how South African cities structure service charges and tax residents.
As legal filings proceed, Cape Town residents and property owners remain in limbo, uncertain whether the cleaning levy will be upheld – or scrapped, with refunds to follow.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
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