By Delisa Thwala
The Minister of Housing and Urban Development, Apollo Maphalala, has called on the Eswatini government to clear its outstanding municipal rates to ensure the smooth operation of local authorities.
Speaking during the final day of a three-day stakeholder consultation workshop on the Rating Act of 1995, held at Tums George Hotel in Manzini on Tuesday, Maphalala emphasized that the government should be held accountable for paying its dues, just like any other ratepayer.
The minister’s remarks come amid concerns that unpaid rates by government entities are significantly hampering the efficiency of municipalities.
He stressed that for municipalities to deliver essential services effectively including waste management, road maintenance, and infrastructure development government must set an example by fulfilling its financial obligations.
“We cannot expect municipalities to perform at their best when the largest property owner in the country government itself is lagging in payments.
The government should be obliged to pay its rates, just like any other citizen or business,” Maphalala stated.
His call for accountability was echoed by several stakeholders present at the consultation, who agreed that municipal finances were under strain due to non-payment of rates by various institutions, including government departments.
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Among the key discussion points of the workshop was the issue of rate payments for vulnerable groups, particularly widows, widowers, and retired individuals.
Former Principal Secretary Stewart suggested that the government should consider reducing or exempting these groups from paying rates, particularly the current 15% rate.
We need to be mindful that there are people who genuinely struggle to make these payments. A widow or retired person living on a fixed pension should not be burdened in the same way as a large business or commercial property owner,” Stewart said.
His sentiments were widely supported, with participants arguing that policies should be restructured to provide relief for low-income homeowners.
The suggestion aligns with international practices, where senior citizens and economically disadvantaged individuals often receive tax breaks or exemptions on property-related charges.
Worth mentioning is that, the Rating Act of 1995 governs how property rates are levied and collected in Eswatini. It mandates all property owners within urban areas to pay a levy based on the value of their land and improvements.
These funds are crucial for the functioning of municipalities, as they cover essential services such as: Road maintenance, street lighting, garbage collection, water and sanitation infrastructure and public safety initiatives among others.
Municipalities rely heavily on these rates to provide services, and non-payment can lead to financial constraints that ultimately affect service delivery.
However, enforcement of payments has remained a challenge, especially when large institutions, including government, fail to pay their dues.
In recent years, municipalities have struggled with revenue collection, often resorting to issuing summonses to recover unpaid rates.
Some urban councils have proposed stricter measures, such as interest penalties and even property seizures, to compel compliance.
Stakeholders at the consultation proposed several measures to address the challenges faced by municipalities regarding rate collection.
These included: Government Compliance, ensuring that all government-owned properties are up to date with payments.
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Flexible Payment Plans: Introducing installment-based payment structures for struggling property owners.
Exemptions for Vulnerable Groups: Revising the Rating Act to provide relief for widows, widowers, and retirees.
Stronger Enforcement: Empowering municipalities with legal backing to take action against habitual defaulters.
Minister Maphalala assured attendees that the government would take these concerns into account and work towards a more efficient and equitable system for municipal rate collection.
“We must strike a balance between ensuring the financial sustainability of our municipalities and protecting vulnerable groups from undue hardship.
This consultation has provided valuable insights, and we will use them to inform future policy changes,” he concluded.
The consultation marks a step towards a more transparent and accountable municipal rating system one that ensures service delivery without placing excessive burdens on struggling ratepayers.
Whether government will act on these recommendations remains to be seen, but for now, municipalities continue to operate under financial strain, waiting for overdue payments to be settled.
