Latest news with #R194
Eyewitness News
5 days ago
- Business
- Eyewitness News
Tshwane says revenue generated from new cleansing levy will go towards fixing landfill sites
JOHANNESBURG - The Tshwane Municipality said revenue generated from its new tariff, the city cleansing levy, will go towards fixing its dysfunctional landfill sites. On Thursday, the Tshwane council passed its annual budget for the 2025 / 2026 financial year. The budget includes the R194 a month city cleansing levy that will be charged to customers using private waste collection services. The Democratic Alliance (DA) has criticised the new tariff, saying the city is double-charging over-burdened ratepayers since private waste collectors also pay landfill site fees. However, MMC for Finance Eugene Modise said the current administration is trying to fix issues it inherited from previous DA-led coalition governments. 'We as this executive, went to conduct oversight in all our landfill sites and there is none that have got a lifespan of more than three years as we speak. There is a moratorium that says we cannot apply for landfill sites. All of them, the weighbridges are not functional. Who was in power? What did they do? So, we are going to make sure the landfill sites are fully functional and access controlled.'
Eyewitness News
5 days ago
- Business
- Eyewitness News
Tshwane Municipality council passes 2025/26 budget, new tariffs & rates to kick in from July
JOHANNESBURG - The Tshwane Municipality council has passed its budget for the 2025/26 financial year. This is the first annual budget passed by the African National Congress (ANC)-led multiparty coalition since it was formed last October. The Tshwane council met on Thursday for a vote on the budget. Tshwane Speaker Mncedi Ndzwanana announced the results of the budget vote in council on Thursday. "Honourable councillors, the City of Tshwane 2025/26 budget has now been passed, with 113 councillors in favour." The budget will introduce a new city cleansing levy of R194 a month. The levy is targeted at properties that use private waste collection services. Finance MMC Eugene Modise said that proceeds from the levy would be used to revitalise the capital's deteriorating landfill sites. "All of them, the weighbridges are not functional. Who was in power, what did they do? So, we are going to make sure the landfill sites are fully functional." The new tariffs and rates take effect from 1 July.
IOL News
13-05-2025
- Business
- IOL News
Bree Street repair to be completed in August: Johannesburg Roads Agency
Johannesburg Roads Agency says it is confident that the Lilian Ngoyi in Johannesburg was hit by a gas explosion two years ago will be completed by August 2025. The Johannesburg Roads Agency (JRA) says it is confident that the first phase of the rehabilitation work on Lilian Ngoyi Street, formerly known as Bree Street, is 'progressing according to schedule and is still on track' for completion by the end of August 2025. The road has been closed since July 2023, after a devastating gas explosion which claimed the lives of over 15 people and left others injured as it ripped up the key route into the CBD. The explosion resulted in the collapse of approximately 450 metres of Lilian Ngoyi Street, between Harrison and Kruis Streets. The incident also caused substantial damage to vital underground infrastructure, including stormwater and electrical networks. After a mutual separation agreement and settlement with the first contractor, Step-Up Engineering, the new contractor, Korone Engineering, has been reassigned. IOL News previously reported that City of Johannesburg mayor Dada Morero confirmed that the total cost of the project will be R194 million. JRA spokesperson Bertha Peters-Scheepers said, despite the recent adverse weather conditions that threatened to delay progress, an acceleration plan was swiftly implemented to mitigate potential setbacks. 'As part of the recovery strategy, the contractor mobilised additional resources and extended working hours, including weekend shifts,' she said. Peters-Scheepers said proactive measures have ensured that construction remains on schedule, with 43% of the project scope already completed and 60% of the service tunnel completed. 'Notable progress has been achieved on the new and upgraded concrete tunnel, a key element of the overall infrastructure enhancement,' she said. Meanwhile, JRA acting CEO Lufuno Mashau said, "Beyond the visible construction, this crucial project involves the complex reinstallation and relocation of essential stormwater, water, and sewer pipes.' Mashau said they are installing new lighting, smoke detection, and ventilation systems in the service tunnels. 'As part of the health and safety assurance and compliance on the project, the lateral support on deep excavations has been installed.' 'Upon completion of this initial phase, the 450-metre section of Lilian Ngoyi Street will feature a newly constructed road surface, expanded sidewalks, designated vendor spaces, upgraded bus stops, and associated street furniture, significantly enhancing the urban environment and pedestrian experience.' Mashau added that the second phase of the project, scheduled to commence in September 2025, will focus on the rejuvenation of the remainder of 1.8 kilometres of the street, stretching between Ntemi Piliso and End Streets. The Democratic Alliance (DA) in Gauteng conducted an oversight on the street on Monday. The delegation included Gauteng shadow MEC for Human Settlements, Mervyn Cirota, Johannesburg caucus leader, Belinda Kayser-Echeozonjoku, Johannesburg central head, Andrew De Blocq MPL, and councillors in the City of Johannesburg. The party said that it discovered that the rehabilitation project of Lillian Ngoyi Street is underway. However, Cirota said the DA completing the work within three months is unrealistic 'We estimate that it may take another year.' He said the DA will be sending questions to the City of Johannesburg mayor Dada Morero and Gauteng premier Panyaza Lesufi to ascertain who is responsible for the project, the actual timelines, the budget spent, and the work done thus far. 'It serves no one for the Gauteng residents to have their hopes raised only for the project to stall. 'This is one of the reasons why the DA has filed a motion of no confidence against the City of Johannesburg Mayor, Dada Morero, who has proven ineffective in holding people accountable,' Cirota said. 'It is also the reason why the DA finds Premier Lesufi unfit for purpose because this is happening under his watch.' IOL News
IOL News
06-05-2025
- Business
- IOL News
Outcry over City of Tshwane's proposed cleansing levy
AfriForum has slammed the City of Tshwane's proposed cleansing levy, calling it unlawful and an added burden on residents. Image: Helenus Kruger / City of Tshwane Civil rights group AfriForum has rejected the City of Tshwane's proposed cleansing levy, calling it unlawful due to double taxation and arguing it would unfairly burden the city's already overtaxed residents. The proposal is part of a draft budget for the 2025/2026 financial year set to take effect on July 1. The proposal targets gated communities and shopping malls without existing city waste accounts but using private waste collection services, with a proposed monthly tariff of R194. Member of the Mayoral Committee for Environment and Agriculture Management, Obakeng Ramabodu, recently explained that some shopping malls are being targeted because they often have multiple bins but only pay for one. He cited that areas like Wonderpark Estate and malls such as Menlyn Mall are among those targeted, as they use private waste collection services that dispose of waste at city landfills. 'They use our landfills, (which) we maintain (at a cost). They don't maintain them and that is why we are calling for this cleansing levy,' he said. The DA in Tshwane has opposed the proposed levy, describing it as another tax burden on the city's already overtaxed residents. AfriForum has joined the criticism, calling the levy unlawful due to double taxation and arguing it unfairly targets the city's already overburdened residents. The organisation demands that the levy be scrapped, advocating instead for internal reforms and better resource management within the city. AfriForum stated that the proposed levy would target vacant land over 150,000m² and properties valued above R250,000 that do not use the city's refuse removal services. The organisation argues that the proposed levy violates Section 74(2) of the Municipal Systems Act, which requires that municipal service charges be proportional to usage. Deidré Steffens, advisor for local government affairs at AfriForum, said: 'A levy on properties, regardless of the use of a certain service, as planned here, is therefore contrary to this section of the law. This levy is a clear attempt by the Metro to boost its revenue at the expense of overburdened residents.'
The Citizen
05-05-2025
- Business
- The Citizen
Have municipalities crossed the peak of the Laffer curve?
Higher tariffs, lower income, poor service delivery … Citizens are heavily burdened by tariffs and other costs imposed on them, even as service delivery continues to deteriorate. Picture: Phill Magakoe/AFP via Getty Images Despite implementing annual tariff increases – often surpassing the prevailing inflation rate – the City of Tshwane's revenue from consumer services has remained largely stagnant. This trend suggests that residents may have reached their financial limits, rendering further increases ineffective. Lex Middelberg, a councillor from the Republican Congress of Tshwane, has analysed the city's financial statements over recent years and concludes that the council's income from trading services has declined over the last few years in real terms. In the last financial year, revenue from consumer payments was lower than in 2020/21, even in nominal terms, he shows. Middelberg believes the municipality has surpassed the peak of the Laffer curve – a concept in economics that illustrates how excessive taxation can lead to a decrease in total revenue. This occurs because high taxes may discourage economic activity or prompt taxpayers to seek ways to avoid taxes. Dawie Roodt, chief economist at the Efficient Group, agrees with Middelberg's assessment. He says the same applies to almost all government institutions in South Africa. Citizens are heavily burdened by the costs imposed by the government, even as service delivery continues to deteriorate. Service delivery issues are evident in various parts of Tshwane. On 30 April, Alderman Dana Wannenburg reported that residents in Wards 4 and 98 had been without water for eight days, and some areas were without electricity for three days. Such prolonged disruptions are becoming increasingly common in the city. ALSO READ: R100 billion debt: only 10 municipalities honouring their accounts Correlation between tariffs and the use of services Morné Mostert, head of local government affairs at AfriForum, has expressed concern over municipalities' approaches to revenue generation. He emphasises that, according to the Constitution and the Municipal Systems Act, there must be a clear correlation between the tariffs charged for municipal services and the extent to which the consumer uses those services. This principle has been upheld in legal precedents. AfriForum has criticised a new cleaning levy of R194 per month that Tshwane plans to impose from 1 July. This levy targets vacant plots larger than 150 000m², and business and residential properties valued over R250 000 that do not use the city's waste removal services. AfriForum argues that this constitutes double taxation and unfairly burdens already overtaxed residents. Johan Hopley from Impact Metering highlights the city's fixed monthly charge for the first nine kilolitres of water. Regardless of whether a household uses two or three kilolitres, it is billed for nine. ALSO READ: Distressed municipalities spent less than 4% of budget on maintenance — Cogta Basing tariffs on property values The City of Cape Town's proposed tariff increases – and its plans to link fixed monthly charges for water and sanitation, as well as a new cleaning levy, to property values – have also sparked public outcry. The Collective Ratepayers' Association (CRA) has launched a petition against the draft budget, stating that while it understands the need to invest in infrastructure – especially in under-resourced areas – the proposed 11.4% budget increase is too high. 'It's more than three times the inflation rate and follows previous increases of 11.9% (2024) and 11.2% (2023),' it says. The CRA warns that such increases could lead to financial strain for single-income households and retirees, potentially resulting in the loss of their homes. It argues that tying fixed tariffs to property values does not comply with legal requirements, as it does not reflect actual usage. AfriForum shares this view. ALSO READ: Eskom owed R81.6 billion by municipalities: Who owes the most? Increases above projected inflation must be justified In December, National Treasury issued a circular advising municipalities to ensure that their tariffs remain affordable. Municipalities are encouraged to assess the costs of delivering specific services efficiently annually and to base their tariffs accordingly. 'The Consumer Price Index (CPI) inflation is forecasted to be 4.4 per cent; therefore, municipalities are required to justify all increases more than the projected inflation target for 2025/26 in their budget narratives and pay careful attention to the differential incidence of tariff increases across all consumer groups,' according to National Treasury. Mostert says if a municipality provides a well-substantiated document demonstrating the necessity of a particular tariff to deliver a specific service efficiently – and uses the funds exclusively for that service – there would be little grounds for objection. However, he notes that figures are often arbitrarily determined, or municipalities simply apply a percentage increase to existing tariffs without thoroughly evaluating cost-efficiency. This article was republished from Moneyweb. Read the original here.
