Increases on tariffs on Johannesburg City's services will be used to force residents to consume less, the city said on Wednesday.

Johannesburg residents will spend much more on rates and taxes if Mayor Amos Masondo's proposed budget is accepted by the council on Thursday.

In his budget speech for the 2009-2010 financial year, Masondo proposed widespread hikes in rates and taxes across the board.

Property rates were expected to go up by 18 percent (from revenue of R3.89-billion in 2008-2009 to R4.106-billion) and electricity service charges would increase by 30 percent (from R5.56 billion in 2008-2009 to R6.909-billion).

Water service charges will rise by 18 percent (from R3.68-billion to R4.125-billion) and refuse removal by four percent (from R687 796-million to R885 037-million).

The city also budgeted for a four percent increase on fines and agency services (from R841 707-million to R852 403-million) and another 18 percent extra for operating grants (from R3.67-billion to R4.149-billion).

Mayor Amos Masondo tabled his budget for the coming financial year on Wednesday. The council was expected to approve it in the ordinary council meeting on Thursday.

Parks Tau, member of the mayoral committee for finance and economic development, said the tariff review was done under the "immense pressure" of the international economic crunch and increasing demand on limited and "fast depleting" resources.

Tau said tariffs would be used as an economic instrument to change consumption behaviour on all consumer categories.

"Key considerations for the tariff increases was a projected water shortage, the need to respond positively to climate change initiatives to minimise the impact of global warming and the implementation of a second bin to facilitate the sorting of waste at the source."

The city also wants to make services affordable to the indigent, based on the poverty index to cater for poor residents.

Business property tariffs would also increase from the prevailing 1.2 cents in the rand to 1.54 cents in the rand, Tau said.

He said the city was keen to engage with residents and businesses on issues of rates and taxes.

Do you live in Jozi? What do you think of the latest tariff increases? Leave a comment below…

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