Warning to anyone living in South Africa’s major cities

 ·21 Jul 2025

Residents in major cities across South Africa risk facing higher rates and taxes if methods used by the City of Cape Town and City of Tshwane to boost their revenues are left unchallenged.

This is the warning from the Cape Town Collective Ratepayers’ Association (CTCRA), which has been pushing back against the city’s latest budget, and additional pressure being placed on taxpayers.

Last week, the South African Property Owners Association (SAPOA) launched a High Court application seeking a review of Cape Town’s decision to link certain fixed municipal charges to property values under the 2025/26 “Invested in Hope” budget.

Under the budget, Cape Town introduced a new ‘city-wide cleaning’ tariff to ratepayers’ bills based on the value of their properties. It also restructured the sanitation charge to be adjusted based on property value.

The city has argued that by attaching the fees to property values, it is able to tap those who are able to pay higher rates to fund its “pro-poor budget”, including the R40 billion infrastructure investment over the next three years.

However, the CTCRA maintains that the way these fees have been structured is unlawful, with the cleaning fee in particular being problematic.

“(The City Cleaning Tariff) is not a service rendered to properties but is a general cost of running a city, no different to road maintenance, emergency services and dozens of other expenses,” it said.

“We are advised that there is no legislative foundation to bring it under a separate service charge, nor that it can be linked to property values. Instead, the activities that fall under this category should be funded through property rates.”

The CTCRA is exploring joining SAPOA’s court action as a friend of the court, stressing that the matter needs legal and legislative resolution before the structure gets out of control.

Specifically, it said that, without legal precedent, it is only a matter of time before other cities across the country start setting up their own ‘cleaning fees’, using the City of Cape Town’s structure as a basis.

“This case is not just of importance to the ratepayers of Cape Town. If left unchallenged, there is a realistic possibility that other municipalities in South Africa will adopt CoCT’s methods,” it said.

“It is critical that the rule of law, fairness in service delivery, and constitutional accountability are upheld — not just for our city, but for the nation.”

While Cape Town Mayor Geordin Hill-Lewis has accused SAPOA of chasing profits in its legal challenge, CTCRA said that the association is speaking on behalf of tens of thousands of residents negatively affected by the fees.

Further, it is taking action to get legal certainty for the tens of thousands of other households in other cities who could face similar fees in the future.

Tshwane City Cleaning under fire

The City of Tshwane wants additional revenue to clean the streets. Residents aren’t happy with the method.

In a manner of speaking, the CTCRA’s warning is already ringing true in other metros, like the City of Tshwane, which also launched its own City Cleaning fee in 2025.

Tshwane’s fee does not follow the format of Cape Town in that it is a fixed fee that is charged to properties making use of private refuse removal services.

It is not a dynamic fee based on property value.

However, it speaks to the financial strain the metros find themselves under and the methods they use to protect revenue.

Similar to Cape Town, the Tshwane cleaning tariff is also facing legal action.

Lobby group AfriForum has launched a High Court challenge to have the tariff overturned on the basis that it amounts to double taxation.

The City of Tshwane hit back at the legal challenge, saying that the primary purpose of the city cleansing charge is to drive environmental objectives and ensure that “the residents of Tshwane do benefit and live in a clean city”.

It argued that even properties using private refuse removal services benefit from the city’s waste processing and other related services, which they do not pay for.

The municipality plans to raise R600 million a year through the tariff to boost services like street cleaning and hygiene management.

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