municipalities can now levy taxes
12 March 2007

Cabinet has approved the Municipal Fiscal Powers Bill for tabling in Parliament during the current session, it will also regulate the authorisation of municipal taxes by the finance minister and ensure that municipal fiscal powers and functions are exercised in a manner that will not materially and unreasonably prejudice national economic policies or national mobility of goods and services,  government communications head Themba Maseko said on Thursday.

Once in force, the legislation will allow municipalities to levy taxes on local residents.

Briefing the media in Cape Town following Wednesday's fortnightly Cabinet meeting, Maseko said the draft legislation provided for the phasing out of the Regional Services Councils and the Joint Services Board levies.

Responding to a question, Maseko said: "One thing for certain is that before any municipality imposes any form of tax, it will require approval from the minister of finance. Those are the main provisions of the bill."

sapa, www.business.iafrica.com