‘Mangaung wants non-residential property owners to pay for others’ debt’
Gopal insists that a “tariff” linked to property value is actually a form of tax and says the fact that the metro has a revenue shortfall on this service does not give it the right to act without legal authorisation.
Gopal suggests several alternative solutions for the Mangaung metro to resolve the revenue shortfall on its refuse removal service: Increase rates, since these can be lawfully used to subsidise services like refuse removal; Charge per volume, for example per black bag removed or bin emptied; and/or Improve the efficiency and cost effectiveness of the service and improve collections.
Mangaung says it wants to ‘fill the gap’ The metro is opposing the application and has disclosed in its answering affidavit, deposed by Mayor Gregory Nthatisi, that one of the motivations for imposing the value-linked tariff on non-residential properties is to fill the gap left by the large number of consumers that are currently not paying for the service they receive.
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