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The revenue department is in Thuso House, 61 Jorissen Street, Braamfontein
The revenue department is in Thuso House, 61 Jorissen Street, Braamfontein

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Deadline looms for
arrears write off

Indigent households who want their council debts written off need to apply for the Municipal Services Subsidy scheme by the end of the month.

March 16, 2006

By Lucky Sindane

JOBURG residents who qualify for the Municipal Services Subsidy scheme have until Friday, 31 March to register.

The campaign to register indigent households for the subsidy was launched in Soweto by Executive Mayor Amos Masondo in May 2005. The deadline for registration and to have arrears written off, was originally 31 January 2006, but that was extended by the mayor earlier this year.

Mandy Jean Woods, the revenue department's spokesperson, said that there had been a significant number of registrations following the deadline extension announced by Masondo in January.

"The Municipal Services Subsidy scheme is a major incentive to poor communities in Johannesburg to relieve their burden of debts but at the same time reinforce a culture of payment," she said.

"When we launched the registration programme for the subsidy we estimated that around 100 000 households in the City would qualify for the scheme and that we could write off around R1,5-billion in total. There was an immediate and significant response and to date we have already registered more than 100 000 households and written off more than R1,3-billion in arrears debt."

Johannesburg provides free basic municipal services to the city's poorer residents. It also provides six kilolitres of water and 50 kilowatts of electricity a month free to all residents. In addition, there are no charges for assessment rates for properties valued at under R20 001.

The Municipal Services Subsidy scheme covers the remaining charges of refuse removal and sanitation. Pensioners, people with disabilities who are beneficiaries of a national social security grant, and breadwinners with HIV/Aids and-or their orphans who are City account holders, qualify to apply for the scheme.

People can apply at any municipal pay point where registrations are being done. To apply, residents must have original or certified copies of their:
  • South African identity book;
  • Latest municipal account;
  • Proof of earnings;
  • An affidavit from the South Africa Police Service confirming employment status if unemployed;
  • National social security grant card (if applicable);
  • Letter from South African Revenue Service confirming tax status; and
  • A copy of the death certificate of the account holder (where applicable).
The subsidy is valid for 36 months, after which the account holder will have to reapply. Applicants are also obliged to report immediately any change in their status during this period.

Those found abusing the scheme will face legal action. They will have their applications reversed and will be compelled to pay all arrears immediately. They will also not be allowed to reapply for the subsidy for five years.

From 1 April, customers can still apply to be registered for the scheme, but they will not have their arrears written off.



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