The City of Cape Town is preparing for a legal battle in September as mounting opposition challenges the legality of new fixed charges introduced in its 2025 budget.
In court filings, the city has defended its position, while property owners and residents accuse the municipality of unconstitutional overreach.
The dispute centres on three new tariffs: a city-wide cleaning levy, a fixed water charge, and a fixed sanitation fee.
These charges, unlike traditional service-based billing, are linked to the municipal value of properties, not to actual consumption – prompting strong resistance from civic groups and property owners.
New Tariffs Under Fire
- Cleaning Tariff: Applies to all properties, calculated by property value; unrelated to any specific services rendered to the property
- Fixed Water & Sanitation Tariffs: Charged regardless of actual usage, and based on property value rather than service consumption
Critics argue that this approach imposes a regressive financial burden, particularly on middle-class households that cannot offset increased costs like commercial property owners might.
Legal Challenge Gains Momentum
The South African Property Owners Association (SAPOA) launched a High Court application in July to have the levies scrapped, citing violations of Section 229 of the Constitution, which restricts municipalities to:
- Property rates
- Service-based charges
- Surcharges on these charges
- Taxes explicitly permitted by national legislation
SAPOA says that none of the new charges meet these criteria, and labels them revenue-generation tools under the guise of service delivery.
The Cape Town Collective Ratepayers’ Association (CTCRA) – representing 40 community groups – has joined the case as a friend of the court, warning that if these levies stand, they may set a precedent for municipalities across South Africa.
“This is not just a fight for Cape Town,” said a CTCRA spokesperson.
“It’s about protecting all South Africans from unlawful taxation masked as service fees.”
City Stands Firm
In its answering affidavit, the City argues that it is operating within its legal mandate to provide services and secure the financial sustainability of the metro.
It says the new fees support infrastructure development and a “pro-poor” budget, with wealthier ratepayers subsidising vulnerable communities.
Cape Town Mayor Geordin Hill-Lewis has defended the charges as necessary to avoid a R2 billion budget shortfall, warning that removing them would breach the Municipal Finance Management Act by leaving the city with an unfunded budget.
The city also disputes SAPOA’s constitutional interpretation, arguing that it reflects a “selective reading” of the law.
More Than Just the Rich Are Angry
While city officials have characterised the pushback as a “rich vs. poor” issue, CTCRA rejects this, noting thousands of objections from residents of all income levels.
“This is not about the wealthy protecting their wealth,” said CTCRA.
“This is about accountability and fair governance.”
The matter is scheduled to be heard in the Western Cape High Court on 18 and 19 September 2025.
With major implications for municipal finance models across the country, all eyes will be on the outcome.
Are you backing the City of Cape Town to win or lose their court battle next month?
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