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“The proposed rate amendments to the Municipal Property Rates Act boils down to nothing other than an unconstitutional wealth tax which are being levied by local governments,” Mr. Jaco Mulder, FF Plus MPL and provincial leader for Gauteng said.

The FF Plus has in the past already expressed its concern about the fact that property rates are being levied on both the value of the land as well as the improvements which have been brought about on it. Owners of improved property have already paid tax to SARS on the money used to purchase and improve the property. Added to this, value added tax has also been paid to service providers.

If a further levy is to be charged, in accordance with this proposed amendment bill, for improvements for which tax has already been paid to SARS, it would be nothing other than a wealth tax which in terms of the South African Constitution is not allowed.

“It is time for once and for all to stop the South African government which, with its continued attempts, are trying to deflect attention away from the real reason why there is poor service delivery in South Africa,” Mulder added.

Service delivery in local governments will improve as soon as expert and knowledgeable officials are appointed to manage municipalities. The mere raising of more taxes will not help at all.

The FF Plus will within the next couple of days be launching a website through which the public will be able to, through the signing of a petition, show their dissatisfaction with the proposed bill. The FF Plus expresses the hope that the reaction and opposition of land owners will overwhelmingly flood over the proposed amendment bill.