Rates are crippling businesses in South Africa – and consumers are paying the price
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GUEST – Waldo Marcus, head of marketing at TPN Credit Bureau
Commercial property landlords face mounting municipal costs – including rates, taxes and metered utility costs – which are often passed on to consumers through higher prices. The TPN Credit Bureau’s latest Rental Monitor Report for the first quarter of 2023 found that municipal costs now make up 61% of the total operating cost and 26.2% of the gross income generated by commercial property. “A staggering 29% of total operating costs go towards electricity, 25% towards rates and taxes and 6.7% towards water, sewerage and effluent,” reported the financial services company. As a result, businesses have been hiking prices which are reflected in increased consumer costs.
Commercial property landlords face mounting municipal costs – including rates, taxes and metered utility costs – which are often passed on to consumers through higher prices. The TPN Credit Bureau’s latest Rental Monitor Report for the first quarter of 2023 found that municipal costs now make up 61% of the total operating cost and 26.2% of the gross income generated by commercial property. “A staggering 29% of total operating costs go towards electricity, 25% towards rates and taxes and 6.7% towards water, sewerage and effluent,” reported the financial services company. As a result, businesses have been hiking prices which are reflected in increased consumer costs.
