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Increases Will Harm Businesses

The Cape Chamber of Commerce said it would be an “absolute disaster” for local businesses and residents if the proposed rate increases in the draft budget are approved.

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Increases Will Harm Businesses

| News by Staff Reporter

Warns the Cape Chamber of Commerce


The Cape Chamber of Commerce said it would be an “absolute disaster” for local businesses and residents if the proposed rate increases in the draft budget are approved.

The proposed rate increases in the draft budget include an 11,03% increase in electricity; 7% in waste removal; 24% for the removal of hazardous waste; 15% for water and sanitation; and a 6,5% bulk water tariff increase.

These increases, if adopted by the full council in May, would be effective from 1 July.

Households in the “middle income range” would see an increase in rates of 12,7 percent, while those in the “affordable income range” would see an 11,3% rise.

Cape Chamber of Commerce President Michael Bagraim said these increases would hit local businesses the hardest.

“The bottom line is businesses are going to have to swallow the costs and can’t pass them on to the consumer, which is outrageous.

“It’s going to push a lot of businesses to the wall,” he said.

While the increases in electricity may be lower than last year’s increases, said Mr Bagraim, coupled with the increases in petrol prices they are still high.

“Local government is being very unfair. For electricity distribution costs, they don’t have to pass those on to the consumer,” he added.




Source: www.bizpremises.co.za