The Financial and Fiscal Commission's latest recommendations for how municipalities should supplement their income are irrational and totally out of touch with the South African reality.
This Commission is tasked with advising Parliament and the government on state expenditure and revenue. Its latest recommendations aimed at helping municipalities solve their cash-flow problems include, among other things, instituting taxes on parking areas, fire brigade levies, levies on billboards and advertisements at businesses as well as levies on hotel beds.
One of the reasons provided for making these recommendations is that the central government cannot continue offering financial support to municipalities due to its own growing budget deficits. Outstanding tax collection in local governments already amounts to R150 billion.
But no mention is made of the fact that the ANC-controlled municipalities do not want to collect taxes from their voters due to political reasons. After all, the next local government elections are around the corner.
No mention is made of the chaotic record-keeping and management of municipal finances due to cadre deployment either. The same goes for the looting of the funds that are available.
The Commission also conveniently forgot about the principle that there must be effective service delivery in exchange for the payment of rates and taxes. The dilapidated condition of our municipalities countrywide speaks for itself.
These recommendations come at a time when business enterprises and job creators have been forced to their knees by a number of irrational lockdown regulations enforced by the ANC government. And now these very same businesses are expected to pay even more absurd rates and taxes to support corrupt municipalities. It is madness.
The FF Plus already warned that the people of South Africa are tired of paying rates and taxes while they receive no benefit whatsoever. The impression that they are funding fraud and corruption is causing a growing feeling of revolt among taxpayers.
The Commission and government must wake up from their irresponsible, socialist daydreams and see the reality of the South African economic situation for what it really is. Everything must be done to put the interests of businesses, taxpayers and South Africa first.
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