Alpha Ramushwana4 September 2024 | 10:05

City of Ekurhuleni implements 70% debt write-off incentive for struggling households

This incentive is only available to those whose municipal accounts have been overdue for more than 12 months.

City of Ekurhuleni implements 70% debt write-off incentive for struggling households

FILE: Jongizizwe Dlabathi. Picture: Jongizizwe Dlabathi/Facebook

JOHANNESBURG - Households that have been struggling to pay rates and taxes to the city of Ekurhuleni can now benefit from an offer from the metro.

Residents can now apply for a 70% debt write-off.  

This incentive is only available to those whose municipal accounts have been overdue for more than 12 months.
 
The city implemented this initiative to reduce its debtors' books and alleviate household debt in the metro. 

Ekurhuleni Finance MMC Jongizizwe Dlabathi told Eyewitness News that the offer would be valid between now and June 2026. 

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The 70% debt write-off is available only for residential properties valued at less than R3 million. 

Properties exceeding this value will receive a write-off on the interest accrued on their debt, but not on the principal amount. 

According to a council report, which Eyewitness News has seen, the remaining 30% will be written off incrementally over three years. 

Dlabathi said the debt write-off incentive would bring much-needed relief to residents. 

"By no means are we entrenching the culture of non-payment within the city, but all that we are saying is that let's give them a once off relief but let's also manage our debtors' books," said Dlabathi.

Dlabathi also warned that failure to comply with the city’s terms for the debt write-off could result in the reversal of the incentive.