Residents who avoid municipal payments risk tax refunds
Residents who avoid paying for municipal services might have their tax refunds withheld in the future.
The South Africa Local Government Association (SALGA) has approached the South African Revenue Service (SARS) as it tries to improve revenue collection at municipalities.
It says 99 municipalities in the country are sitting with outstanding payments that are at least 90 days in arrears.
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SALGA says more than half 59% of that debt can't be recovered.
Spokesperson, Sabelo Gwala says they are looking to amend the Tax Administration Act to allow SARS to legally withhold refunds to taxpayers owing on their utilities.
"SARS is very sympathetic to this cause because it's a symbiotic relationship. It enhances them over 250 municipalities in South Africa, so you are talking quite a large number of databases that need to be consolidated and that's where the work begins."
