Cash-starved municipalities want tax on businesses
But organised business has rejected the idea as ill-timed and a job killer
An association of the country's 257 municipalities is pushing for the introduction of a local-government tax - most likely to be in the form of a business tax - to bolster municipal finances. But organised business has rejected the idea as ill-timed and a job killer. The South African Local Government Association (Salga), the member municipalities of which are owed R117-billion by businesses, government departments and residential customers, says it is high time the third tier of government was allowed to participate in the proposed tax regime to protect the revenue streams of towns, cities and districts. Thanks to the sluggish economy and widespread unemployment, residents and businesses have been battling to pay their municipal services bills. Salga argues that the tax could help bolster municipal revenues. Of the R117-billion owed to municipalities, only about R20-billion to R30-billion can realistically still be recovered. A senior Salga official said this week that the proposed...
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