Consumers will be hit by above-inflation increases for municipal services from 1 July at a time where even high-income consumers are battling to pay their bills and salaries remain stagnant.
Many consumers already have no disposable income and are keeping their spending in check, which keeps the economy from growing.
Johannesburg:
Julia Fish, manager of JoburgCAN, the community action network of the Organisation for Undoing Tax Abuse (Outa), says the Joburg tariffs are becoming unaffordable for residents.
"Rising interest rates, a declining economic sector, high unemployment and double taxation in the form of having to pay for additional private services, such as security and health services, are severely affecting the city's residents and they cannot absorb these increases easily."
The city must add value and keep increases within inflation, she says. "It continues to rely on paying residents, while delivering limited services in highest-paying regions and have no contingency other than taking on new debt.
"The city appears to be ignoring the opportunities for revenue collection through its public advertisement revenue, rental and the collection of fines."
An increase in these items would place Johannesburg in better financial standing than pricing the budget out of affordable margins for ratepayers.
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