People & News

Levy collection competency

A Port Elizabeth businessman is challenging the constitutionality of the Nelson Mandela Bay municipality's competency to collect regional services levies, because it resides with national government. Speedo Nondumo is seeking an order declaring that certain sections of the Regional Services Council Act are inconsistent with the country's Constitution and are therefore invalid, and that the municipality be interdicted from collecting regional services levies, and from taking any legal action against him for failure to pay such levies.

The implications of the case are that if the municipality loses the matter, this will affect all municipalities in the country that collect regional services levies. Because of the challenge a number of businesses have stopped paying their levies (about R 2,5 million is outstanding) until the outcome of the case.

Regional services levies will be abolished after June next year, and will be replaced by a different form of tax which the national treasury is still investigating.

Article on the Herald

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