May 6 2026 00:15
CAPE TOWN, SOUTH AFRICA
The Western Cape High Court has struck down the City of Cape Town’s unpopular rates and taxes tied to property value instead of consumption.
The court declared the levies unlawful and invalid, giving the city until June 30 2026 to remove them.
The ruling follows a protracted legal fight between the South African Property Owners Association (SAPOA), the Cape Town Collective Ratepayers’ Association (CTCRA), Afriforum and the City of Cape Town.
The legal storm erupted over three tariffs introduced in the CoCT’s 2025 budget, specifically the city-wide cleaning tariff, fixed water tariff, and fixed sanitation tariff.
The cleaning tariff was aimed at maintaining the cleanliness of public spaces in the city, city officials said.
It is not linked to any municipal services consumed at the property, but instead calculated based on the property’s municipal valuation. The fixed water and sanitation tariffs were new fees charged on bills.
These are similar to capacity charges and fixed fees charged for electricity. But the fixed fees differed were based on a property’s value, not consumption. While residents were being charged new levies, they were not receiving any additional services.
SAPOA launched its High Court application in July 2025, seeking to have the levies removed. The CTCRA applied to join proceedings as a friend of the court.
The City of Cape Town opposed the applications, arguing that its models and tariffs were in line with the Constitution, national legislation and the city’s by-laws.
It said the charges were “rational, and part of its constitutional mandate to provide municipal services, and did not amount to unfair discrimination”. They would help to facilitate infrastructure development.
The High Court ultimately ruled in favour of the applicants, declaring the City of Cape Town’s model unlawful and invalid.
According to Afriforum, the High Court’s ruling confirmed that municipal services may only be charged in proportion to their actual use.
“This ruling confirms the core equitable principle of charging for services based on use,” it said.
While the court acknowledged that the City has an obligation to expand infrastructure development and ensure service delivery across the city, it said it must do so legally.
In terms of the ruling, the City of Cape Town was also ordered to pay costs.
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