Levy court battle far from over

The fight over the City of Tshwane’s cleaning levy is far from over after the city announced it would appeal the ruling.

AfriForum’s advisor for local government affairs, Deidré Steffens, hailed as a major victory for residents the High Court in Pretoria’s ruling on the city’s implementation of the cleaning levy as illegal and invalid.

“The levy was also set aside with immediate effect,” said Steffens.

Court ruled the cleaning levy illegal

“The civil rights organisation approached the court to set aside the metro’s decision to impose a new mandatory monthly levy of R194.37 (excluding VAT) on approximately 260 000 households and businesses within the metro.

“AfriForum argued the levy amounted to illegal and unfair double taxation, especially in cases where residents do not benefit from the metro’s refuse removal service and are forced to use private service providers,” she said.

ALSO READ: Court rules against City of Tshwane’s cleaning levy

Steffens said during last week’s court proceedings the city attempted to defend the levy, arguing it was justifiable considering the metro’s 2016 tariff policy.

“However, the city’s legal team was unable to present this policy to the court and even admitted that it was unable to locate the document. The court considered this administrative shortcoming to be serious,” she said.

AfriForum district coordinator for Greater Pretoria South Arno Roodt said the implementation of the levy was nothing more than a fundraising ploy aimed at covering up for years of poor planning and mismanagement.

Tshwane says it will appeal

“The court’s decision sends a clear message that municipalities must also obey the law and that communities are ready to fight injustice,” he said.

City of Tshwane MMC for environment and agriculture management Obakeng Ramabodu said the city would appeal the judgment, “as we remain steadfast in our belief that a cleaning levy aimed at improving the maintenance of our landfills is a step in the right direction and necessary to ensure a safe and clean city for all”.

ALSO READ: Proposed cleaning levy sparks legal challenge in Tshwane

“A cleaning levy was introduced in Tshwane between 2016 and 2021 by the erstwhile government, which now claims to take exception to it,” he said.

DA Tshwane spokesperson for finance Jacqui Uys in February called on the ANC coalition not to introduce any new taxes.

“Regardless of widespread public outcry, the ANC, EFF and ActionSA pushed forward and adopted a ‘funded’ budget that relied on the introduction of a city cleaning levy. Tshwane imposed this new levy on all properties that are using private waste contractors to remove their waste,” she said.

DA Tshwane call on coalition not to introduce new taxes

Uys said that meant properties where there was no service being rendered were being charged extra in Tshwane’s efforts to raise over R500 million in new revenue.

“Charging a fee for rendering no services to people who receive private services is daylight robbery,” she said.

ALSO READ: Tshwane cleansing levy ‘unfair double tax on residents’, AfriForum says

Republican Conference of Tshwane councillor Lex Middelberg said: “We’ll know soon enough just how much they budgeted for this. At least R500 million by my calculation.”

He described the fourth-quarter financial report tabled in council last week as “utter rubbish”.

“When you dig into it, you find most end-of-year invoices are not captured. But importantly, ratepayers in default are about 25% of the billing. This just serves to underscore the fact that we are on the wrong side of the Laffer curve,” he said.

Revenue remained at R40bn for the third year

Middelberg said the city’s revenue remained at R40 billion for the third year in a row despite a 10% increases in rates and tariffs.

“That means that every year the growing number in default is equal to that 10% increase plus inflation. Something big must change – and soon,” he said.

NOW READ: Tshwane cleaning tariff may be challenged in court