Wednesday, November 11, 2009

Cape Town Taxes to Rise as Transit Costs Increase

Property taxes are expected to rise in Cape Town, as costs for the city's integrated rapid transit project balloon.

Ratepayers will bear the brunt of the ballooning costs of the City of Cape Town's R4.5-billion public transport system and the expected R99-million operating shortfall - by paying higher property taxes, parking and fuel levies, paying for permits to use the city's roads or by contributing to a new Local Business Tax.

It was estimated in August, 2008, that the first phase of the Integrated Rapid Transit (IRT) would cost R1.3bn.

But a year later, the city council was asked to downscale the first phase because of unexpected cost escalations. These escalations are now under forensic audit and the findings are expected to be released this week.

Ratepayers to fork out for heavy IRT costs
Cape Times
October 27, 2009