JOHANNESBURG – The City of Tshwane is confronting a serious budget setback following a High Court ruling that declared its newly implemented R194 monthly “city cleansing levy” unlawful. The municipality, which projected roughly R540 million in annual revenue from the levy, must now confront significant financial and operational consequences.
Earlier this month, the Pretoria High Court ruled in favour of lobby group AfriForum, declaring the cleansing levy — imposed on households and businesses using private waste collectors — unlawful, invalid, and unconstitutional. The court emphasized that charging for a service not rendered amounts to double taxation and breaches key principles of administrative justice.
Judge Avvakoumides issued a clear directive: the municipality must immediately stop billing, reimburse affected accounts in the next billing cycle, and ensure no further levies are imposed without lawful authority.
Tshwane Now Scrambling as Court Demands Removal of R194 Monthly Cleansing Charge
Court documents reveal that the cleansing levy was expected to raise around R540 million annually by targeting approximately 194,000 residential and 62,000 business accounts that did not receive municipal waste collection services.
With that revenue stream now blocked, Tshwane must urgently recalibrate its 2025/26 budget. The Democratic Alliance (DA) called on the municipality to abandon any further legal appeals and revise its financial planning to preserve service delivery standards.
AfriForum celebrated the ruling as a critical victory for fairness and good governance. Its legal team argued that the municipality had acted unlawfully and arbitrarily, assigning a financial burden to citizens unjustly. The DA echoed those sentiments, slamming the levy as “daylight robbery” given the absence of corresponding municipal services.
The judge also criticized Tshwane’s failure to locate foundational policy documents when challenged — highlighting administrative shortcomings in how the municipality implemented the levy.
The judgment pinpointed serious flaws in the municipality’s approach. It found that the proposed cleansing levy was irrational because it bore no logical connection to the actual delivery of services. Instead, it appeared to be aimed at supplementing budget shortfalls already covered by property rates.
Moreover, the court underscored that municipal tariffs must align with actual usage and cost recovery — not arbitrary flat-rate charges disconnected from benefits received. Tshwane’s fixed levy violated provisions in both the Municipal Systems Act and the Constitution.
Following the court’s decision, Tshwane’s spokesperson, Selby Bokaba, confirmed that the municipality is evaluating its next steps. The city has one month to apply for leave to appeal. Bokaba stated that senior legal counsel would be consulted to determine the most appropriate way forward based on the implications of the ruling.
With the cleansing levy now legally scrapped, Tshwane faces a sizable and immediate revenue shortfall of R540 million. This financial gap threatens a range of services and infrastructure projects, from waste management improvements to general urban maintenance.
The municipality will now need to explore alternative funding mechanisms to cover this deficit without compromising core services or placing further strain on taxpayers.
The judgment has amplified calls for greater financial transparency, fairness in municipal billing, and legal compliance in budget planning. Citizens and advocacy groups are urging Tshwane to improve how it communicates and implements policies, especially those that directly affect public finances.
For residents, the court’s ruling brings immediate financial relief — and sets a precedent that arbitrary or unjust municipal charges will be challenged and struck down.
The High Court’s ruling is more than just a legal defeat for the City of Tshwane — it is a broader warning about the dangers of poor municipal governance. It underscores the importance of lawful, transparent, and participatory financial planning.
Whether Tshwane decides to challenge the ruling further or swiftly move to revise its budget and approach, the path forward must include stronger accountability and more responsible fiscal management.
Residents are watching closely — and as this case shows, they are prepared to stand up against unjust policies when needed.
Source- EWN
