Western Cape High Court reserves judgement on SAPOA’s challenge to Cape Town’s property-based tariffs
SAPOA’s legal challenge against the City of Cape Town’s adopted 2025/2026 Budget was heard in the Western Cape High Court between Tuesday, the 2nd of December 2025 and Thursday, the 4th of December 2025 with SAPOA represented by GVS Attorneys.
SAPOA says the matter is being heard by a full bench of three senior judges in the Court.
The tariffs being challenged are the city-wide cleaning tariff, the basic water tariff, and the basic sewerage tariff – all three of which are calculated according to property value bands.
“In essence, SAPOA argued that the City does not have the power, in terms of the Constitution and the applicable legislation, to raise fixed charges based on property value bands,” comments SAPOA CEO, Neil Gopal.
According to SAPOA, the Good Party, who sought leave to intervene, the Cape Town Collective Ratepayers’ Association, and SA First Forum, both of whom were admitted as friends of the court, all support SAPOA’s views.
The City of Cape Town brought a counterapplication, focusing on the relevant sections of the Municipal Systems Act, and sought to have it declared unconstitutional if SAPOA succeeds with its challenge.
The Court specifically asked the City of Cape Town’s counsel whether there is any legislative requirement that the City, or any other municipality for that matter, is required to “tighten its belt”. “The City was unable to point out any such requirement, and merely argued that salaries, its biggest expense, are set at a national level,” notes SAPOA.
“SAPOA and its members have no objection to the principle of subsidisation, or to pay its fair share of municipal service costs. The problem arises, however, if a municipality is given unbridled power and a blank cheque to do as it pleases. Municipalities across the country, including the City of Cape Town and others that regularly receive clean audits, must also be held accountable on the way taxpayers’ money is spent,” says Gopal.
The Court reserved judgment, but no indication has been given as to when it may be expected. The Court did point out, however, that this is a complex matter, that requires careful adjudication, and that it is mindful of the effect that this judgment may have on other municipalities throughout the country.
