Tshwane coalition govt pushes back on DA calls for properties worth R450k and less to be exempt from paying rates

JOHANNESBURG - The multiparty coalition government in Tshwane has pushed back on calls by the Democratic Alliance (DA) for properties worth R450,000 and less to be exempt from paying rates.

While the city is currently mulling raising the threshold, proposals in the current draft budget have limited the exemption to R250,000 from the existing R150,000.

Earlier on Thursday, Tshwane Finance MMC Eugene Modise delivered the capital's budget speech during a special council meeting in Pretoria.

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After electricity, property rates are the Tshwane Municipality's biggest revenue generator.

The city's new general valuation roll, which comes into effect on 1 July, will see the city's rateable property book increase by almost 25 percent.

The DA's Jacqui Uys said that properties worth R250,000 should not be paying rates.

"There is a large portion of our communities that would still not be able to qualify for free indigent services, which puts them into the bracket of paying in full for their refuge removal. Some of these residents pay up to ten percent of their salaries for refuse removal."

Finance MMC Modise said that raising the threshold to R450,000 would result in the city losing about 30% of its rates revenue.