Bad news for business and property owners as municipal rates spike

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While businesses and property owners spend billions on development in Gauteng cities, do the municipal services they receive measure up?

FILE PICTURE: Councillors in the City of Joburg council chambers in Braamfontein on 30 September 2022. Picture: Neil McCartney / The Citizen

“It should be noted that SAPOA members represent billions of Rands worth of investments and developments in Johannesburg, Ekurhuleni and Tshwane, which generate substantial revenue in the billions in terms of rates, taxes and service payments for the cities.“SAPOA remains concerned that the priorities relating to the growth of the economy, attracting investment, supporting entrepreneurship and creating jobs are not particularly always responsive to business and investment needs.

“Charging a development levy for “bulk services” and then using that levy for other purposes and/or in other areas is also inevitably leads to a greater infrastructure related problems. Developers will relocate their capital elsewhere or simply not go ahead with their developments.” “This can slow economic growth and affect local businesses which may add to job losses. Increased tariffs raise operational costs for businesses which can lead to higher prices for goods and services and some businesses have been forced to close down in Johannesburg.

 

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