The DA in Johannesburg has opposed the proposed municipal tariff hikes and the impending value-added tax (VAT) increase.
The leader of the DA Johannesburg caucus, Belinda Kayser-Echeozonjoku, cautioned that these changes will severely affect already struggling residents as basic services continue to deteriorate.
Although the VAT increase from 15% to 15.5% may seem insignificant on paper, Kayser-Echeozonjoku criticised the move, saying it will cost South Africans billions of rands without offering any better services.
More hikes set for July
“This comes as residents are already being asked to comment on a new round of tariff increases through the city’s public participation process,” she said.
“The VAT increase is just the tip of the iceberg.”
She stated that, with the exception of zero-rated property rates, residents will see a 3.3% increase in municipal tariffs starting on May 1.
Residents will also face additional hikes starting on July 1, she said, including increases in water and sewer fees of 13.9% plus VAT, garbage collection of 6.6% plus VAT, and electricity prices of 12.74% to 18.3% plus VAT.
She added that there will be a 4.6% increase in property rates.
According to her, a household with a monthly income of R7 600 will incur at least R406 in extra costs, money that could have been used for necessities like food, transportation, or personal hygiene items.
Widespread power outages
These hikes coincide with the city’s services collapsing, according to Kayser-Echeozonjoku.
She cited widespread power and water outages, burst pipes, days-long unattended sewage spills, a disorganised billing system, and a malfunctioning indigent register.
“You cannot fix a broken city by taxing people into poverty. You fix it by fixing the government.
“That means rooting out cadre deployment, appointing qualified professionals, and restoring functional service delivery.
“We stand firmly with residents. We will continue to fight corruption, expose mismanagement, and hold this coalition administration to account because Joburg deserves services that [residents] pay for.”
