AfriForum submits comments against Johannesburg Metro’s continued exploitation of schools via increased property rates

7 May 2023

In March 2023, AfriForum enjoyed success in the High Court in Johannesburg when the court declared the action of the Johannesburg Metropolitan Municipality to scrap the property category of educational institutions unconstitutional. This had been done in respect of the 2022/23 financial year and would have meant excessive property tax increases for educational institutions. Currently, it appears as if the metro is embarking on a similar process for 2023/24. AfriForum therefore submitted comments against it in response to the metro’s public consultation process on rates and taxes.

In the comments, AfriForum demands that education should be retained as a property category. Should the metro be successful with this change, public schools will be categorised as public service property and independent schools as business and commercial properties. This will entail that the property tax of a public school with a value of R100 million will increase from R18 900 per month to approximately R113 400. The tax of an independent school with the same value will increase to approximately R190 000 per month.

According to Morné Mostert, AfriForum’s manager for Local Government Affairs, this action of the metro causes grave concerns. “The Johannesburg Metro should recognise the importance of schools, preserve and promote them, instead of trying to fund itself by means of the taxation of schools. This behaviour is characteristic of a desperate state, which is willing to try anything to obtain funds due to the fact that their financial management leaves much to be desired.”

Alana Bailey, AfriForum’s head of Cultural Affairs, states that a focus of AfriForum is to promote quality education. “This includes protecting educational institutions against exploitation by municipal authorities. Schools are currently under a lot of pressure. Public schools receive limited financial aid from the state and private institutions are essential because the state cannot provide sufficient infrastructure to meet the demand. Subjecting schools to more financial pressure will result in some closing and others cutting back on education services, thereby compromising the quality of education. It is certainly not in anyone’s interest and therefore this recategorisation and taxation must be opposed,” she adds.

Issued by Morné Mostert,Manager: Local Government Affairs, AfriForum, 7 May 2023