Cape Town rate cut slammed as ‘Black Friday sale’ by ratepayers’ group

The City of Cape Town is framing this year’s proposed rate cuts as welcome relief for homeowners feeling the pinch.

It's proposing a 10.2% rate-in-rand decrease in rates for residential properties following general property valuations for the previous year.

But Bas Zuidberg of the Cape Town Collective Ratepayers Association (CTCRA) says he's not convinced the cuts amount to real relief.

“I believe that for our members, this is more like a Black Friday sale. You increase the price first, and then you give a discount."

Zuidberg, in fact, is predicting a significant increase in the rates bills of CTCRA members.

Speaking to Africa Melane last week, Mayor Geordin Hill-Lewis said some 60% of homeowners would receive the discount. Zuidberg is not convinced.

"I don't think our members will. We represent properties above R3 million," he says, adding that since Friday, the CTCRA has received notification from members of increases of between 25% and 135%.

"The median seems to be around 60% [increase]."

ALSO READ: CoCT set to lower property rates formula by 10.2%

Meanwhile, the move by the City comes against the backdrop of an ongoing legal challenge to last year’s increases, with groups like the CTCRA arguing the process was unfair.

The High Court application by the South African Property Owners Association (SAPOA) is challenging the city’s fixed charges for water and sanitation and its cleaning levy.

Last year, Hill-Lewis warned homeowners that if action to scrap the tariffs succeeded, middle to lower-income homes could end up paying more for their rates.

To listen to Zuidberg in conversation with CapeTalk’s Lester Kiewit, use the audio player below: