Only 10.6% of the residents over 18 years old in eThekwini pay rates

by Rick Crouch on Sunday, October 16, 2011 at 8:36am ·

Despite the objections of the eThekwini Municipal officials, Councillor Rick Crouch of the  Democratic Alliance in eThekwini Municipality continues to maintain that only 10.6% of the residents of eThekwini, that are 19 years and older, pay rates. It should be a priority of this municipality to increase that number by creating an environment that will enable the private sector to create jobs and thereby converting as many of the 89.4% who do not pay rates into proud ratepayers.

 

Instead of creating a jobs positive environment the municipality wants to impose a new local tax on businesses. Considering the current global economic crisis it is absolutely irresponsible to impose any new taxes on businesses at this time.

 

“The numbers I used for my calculation of the 10.6% came from a number of sources, including questions answered in council and the municipalities revenue department”, said Councillor Rick Crouch a member of the Finance Committee. “The municipal officials continue in their attempts to debunk my 10.6%. They claim 97%, and if you believe that 97% of all residents over 18 years old in eThekwini Municipality, from Cato Ridge to Umkomaas, are paying rates I have a bridge you might be interested in.”

 

“We have to treat this as a crisis. Start by cutting the red tape and expense of opening and running a business in eThekwini. Business, not government, create jobs and jobs create rate payers. We should be an island in an ocean of red tape and taxes for businesses and ratepayers. We need to be the destination of choice for both business and residents. So what if the other Metro’s are arguing for this, let us stand out from that group and say, no thanks we are pro-jobs and we do not want any part of it.”


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  • John Dovey likes this.
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    • Paul Kirk and nothing will be done to increase the collections base because the non-payers are almost certainly going to be voting ANC
      October 16, 2011 at 9:07am
    • Anthony Lester
      How many of these people above 18 years old are "home owners" ? And how many people can afford to buy a house in etekwini ? Since the council decided all properties were worth an unrelisticall ammount the rates have "adjusted" to that unrel...istic ammount. How ever, I challenge you to get the price that the council says my house is worth and I am telling you that it won't happen in an open market. Since there is such a low percentage paying rates then how come the councillers and city managers are getting such a fat salary ? In my household 75% are non rate payers but there is only one property owner hence your statistics although sound terrible are not worth the paper they are written on or the pen that they are written with !See More
      October 17, 2011 at 1:01am
    • Rick Crouch
      I agree with most of what you have said. But the point it that it is our job as a municipality and a government to create an environment where jobs can be created so that more people can be homeowners and contribute to the rates base, Those... 75% on your property should be in a position to get a job that will enable them to become homeowners and ratepayers. If we do not start doing that and keep taxing the current payers more we are doomed! As for the property price we all know that the valuation of properties is higher than the market values, there are a number of reasons for that, such as bad evaluators, the market price of the house may have been higher 5 years ago when values and the price is now lower but the valuation price is not adjusted during that 5 years etc, etc, etcSee More
      October 17, 2011 at 6:28am
    • Pete van der Spek It is much easier to just tax the "rish" than create jobs. We won't be holding our breath for that to happen. In any case, even if there were more rate payers amongst the "poorer" homeowners, the council would just up the rate that they get for free... What should happen is we pay more VAT then EVERYBODY contributes. Simplistic? I guess I am being simplistic. This whole situation is just not sustainable is it!
      November 25, 2011 at 1:32am
    • Stephen Woodhall Which is exactly why the DA should use rates and taxes boycotts as a weapon. Mike Ellis used to give all sorts of lily-livered reasons for not doing this. The ANC only understands one thing - force - and with a 10x multiplier it would not take many ratepayers boycotting to choke them to the negotiating table.
      November 25, 2011 at 6:52am