Struggling FCC to �tax� the informal sector
Pini Bothoko | Tuesday March 15, 2016 14:51
Last Friday, civic leaders raised concerns after Finance and Development Committee chairperson, James Kgalajwe, presented a P184 million recurrent budget.
Early this year, the FCC took a decision to lower rate charges as a way of accommodating individual ratepayers, a move that impacted negatively on their overall finances.
Kgalajwe said the reduction of rates has affected the council’s income, which dropped from P28.2 million to P20.3 million.
He said this meant the council will have to look elsewhere within its own sources to augment the shortfall.
Nominated councillor, Peter Ngoma, moved for the council to take a resolution for the informal sector to be regulated as an effort to increase the council’s revenue.
Ngoma said the FCC has numerous ways of raising funds and gave as an example, the informal sector that trades for free around the city.
“Currently, the informal sector around the city trades for free whilst they could be charged to pay council as little as P5 or P10 per month which could increase the council’s revenue,” said Ngoma.
Somerset East councillor, Joe Gunda, said the FCC was sitting on money and the leadership was failing to come up with ways to regulate people who currently trade for free around the city.
“There are many people who trade around the city for free and I think we should not chase them away but rather give them permits and charge them a monthly fee to pay,” said Gunda stating that the money could augment the council’s income.
Nominated councillor, Zazambi Tuelo, said there were many small businesses funded by the government that the council could consider also supporting in order to receive a service levy. “Being the backbone of the country’s economy, street vendors, roadside mechanics, to mention but a few, are the people the council should consider regulating and pay as little as P10 or so monthly,” said Tuelo.
Donga councillor, Ben Mpotokwane, echoed other councillors’ sentiments that the council should regulate the informal sector.
He also suggested that the council should also rent out its parking spaces around the city to increase its income.
Mpotokwane also blasted the local authority’s decision to reduce its rates “just because they were higher than other councils,” saying the move was unwise as other councils were perhaps not facing the same challenges as the FCC.