City of Cape Town to raise property rates and tariffs on 1 July – is it fair?
The new structure introduces fixed charges for water, sanitation, and a city-wide cleaning fee – each scaled according to property values.
City centre of Cape Town, Table Mountain. Wikimedia Commons/Discott
CapeTalk's Lester Kiewit interviews Kevin Allan, Founder and Managing Director of Municipal IQ.
Listen below:
Cape Town homeowners are preparing to challenge the City of Cape Town’s proposed municipal tariff structure, set to take effect on 1 July.
RELATED: City of Cape Town to raise property rates and tariffs on 1 July
This has sparked a broader debate: What is the fairest way for municipalities to collect rates to fund services and critical infrastructure?
Should rates be based on property values, which reflect ownership of assets, or on household income, which reflects a resident’s ability to pay?
Allan believes that while no system is perfect, municipalities must have a reliable method of generating revenue.
He supports the City’s approach, noting that a flat-rate system, where every household pays the same amount, is inherently regressive.
In such a system, lower-income households end up paying a greater share of their income compared to wealthier households, he explains.
By tying charges to property values, Allan argues, the burden is more equitably distributed – those who own more pay more.
"That's why Cape Town is moving to a taxing system where it's able to tax people according to their property value."
- Kevin Allan, Founder – Municipal IQ
Scroll up to the audio player to listen to the interview.