The Institute of Race Relations (IRR) has called on the government to apply rebates on property rates and taxes – provided for under emergency legislation – to ease the economic plight South Africans face as a result of the Covid-19 pandemic.
The IRR said in a statement yesterday: ‘Never in living memory has the case for applying a rebate on property rates and taxes been more urgent.’
It pointed out that disaster management legislation had long anticipated the potential need to rebate payments that would otherwise go to municipal government in the event of a disaster that both hampers service delivery and causes extraordinary economic dislocation.
Citing the assessment of Stats SA that ‘(the) personal, social, and economic impact of COVID-19 is unlike anything experienced by the world in the past 75 years’, the IRR observed: ‘No silver shovel will dig South Africa out of this hole, but the IRR’s proposal will restore precious resources to points of most urgent need. Rebates on property rates and taxes will put cash back in citizens’ hands and save livelihoods.’
It said a property rates rebate would have three key benefit.
‘One, for households, especially the poorest households, rebates can bridge the gap between real need and severely limited financial means, helping citizens make the proverbial ends meet.
‘Two, for businesses that have not yet suffered bankruptcy under the year-long State of Disaster, rebates can help preserve going concerns, saving jobs, safeguarding tax contributions and stabilising supply chains.
Said IRR head of campaigns, Gabriel Crouse: ‘For millions, rebating that money now is not a nice to have, it’s a need to have.’
‘Three, for municipalities that struggle to keep accounts, collect debts, and prudently manage resources, this will reduce bad debts while directly boosting the livelihoods of those the municipalities are intended to serve.’
To support the IRR’s campaign for a rebate on property rates, click here.