A new round of municipal tariff increases in South Africa July 1, 2024. The real question is how much they will take cash-strapped Mzansi back for! As reported by Business Tech, Mzansi's main city is proposing a significant increase in South Africa's municipal utility bills that will outpace inflation. How much they want…
Local government tariff increases in South Africa
Following this month's 12.8% hike in Eskom's electricity prices, Mzansi's main cities are on the verge of an above-inflation increase in municipal tariffs that is proposed to take effect in 2020. July 1, 2024. These are part of the budget proposals submitted by major cities to the government for the 2024/25 financial year.
Ironically, municipal leaders claim that Eskom's above-inflation price hikes are the cause of South Africa's municipal rate increases. Similarly, the recent 4.8% increase in the salaries of 1.3 million civil servants has also led to a move towards higher tariffs.
How much will the increase be?
It varies depending on the municipality. The report says eThekwini residents are eyeing the biggest increase. These include property rates, electricity, water, sanitation, and trash removal. Nelson Mandela Bay (15.7%) and eThekwini Metropolitan (14%) The municipality is planning larger electricity increases compared to other major cities such as Joburg and Cape Town.
Unsurprisingly, the eThekwini Ratepayers and Residents Association (ERRA) is insisting that its members reject the price hike amidst dismal service delivery. Cape Town, on the other hand, is proposing aggressive policies. 5.7% Rise in real estate prices. This represents a 180 degree swing from. 1.1% The goal a year ago was to lower real estate prices. The city says the increase will be used to invest in infrastructure, provide services to informal settlements and rebate poverty benefits to the most vulnerable residents.
Fares vary by subway
While still under consultation, the proposed rates submitted by major cities to councils are as follows: July 1, 2024:
local government | Fee | electricity | water | hygiene | refuse |
city of joburg | 4.8% | 10.7% | 7.7% | 7.7% | 5.9% |
eThekwini | 7.9% | 14.0% | 14.9% | 12.9% | 8.0% |
city of cape town | 5.7% | 11.8% | 6.8% | 6.8% | 5.7% |
nelson mandela bay | 5.0% | 15.7% | 6.0% | 6.0% | 6.0% |
Read next: Update on SASSA grants scheduled for April 2024
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