In South Africa, citizens contribute a substantial portion of their income by paying taxes, yet many still pay out-of-pocket for essential services like security, water, school fees, healthcare, and other basic needs.
Individuals are increasingly forced to seek private alternatives—such as generators, water tanks, private schools, medical aid, and security—due to the failure of public service delivery.This raises serious questions about the allocation and efficacy of public funds.
The South African Revenue Service (SARS) reported strong collections across sectors like finance, community services, wholesale, and construction, with tax revenue reaching R1,855 trillion at the fiscal year's end last month, a 6% increase from the previous year.
Despite these revenues, citizens do not see a corresponding improvement in the quality of public services.
Citizens shared their daily experiences with IOL, highlighting how they manage with limited resources.
Nomsa Mbatha, a resident of Yeoville in Johannesburg, spoke about the dire situation and the frustration of paying for services they rarely receive.
She noted that her monthly bill is disproportionately high compared to the poor service quality.
“I stay right next to the water tanker, so most of the time when we don’t have electricity, we don’t have water.
“If there are any maintenance or breakages on the water pipes in Yeoville, those of us who live on the upper level might not have water for up to three days,” she said, adding that her bill was around R3,000 last month.
Despite her inquiries, she was told the billing was accurate according to the meter, though she had never seen anyone reading it.The area is visibly affected by uncollected refuse, water leaks, and potholes.
Maria Potsane from Ivory Park, section 15 “Ma15,” cited water and electricity as major concerns.
Although water tankers visit the area during outages, residents often arrange private alternatives due to the tankers' unreliability.
Potsane mentioned that most parts of Ivory Park rely on breached illegal electricity connections due to its high cost.
“If the water tankers do not come, we obviously have to organise our own because we simply cannot live without water. We pay so that we can have water. As if that is not enough, you experience sewer spillages,” she said.
Statistics South Africa's Income and Expenditure Survey (IES) 2022/2023 indicated that South African households collectively spent an estimated R3 trillion between November 2022 and November 2023, averaging R143,691 per household.
In 2023, most household spending was allocated to housing and utilities, food and non-alcoholic beverages, transport, and insurance and financial services, accounting for 75.6% of total household spending.
Last week, Parliament passed the 2025 Budget, which includes a 0.5% increase in Value-Added Tax (VAT) effective May 1.
This has stirred concerns in markets, businesses, communities, and the Government of National Unity (GNU), with many calling for the VAT to be scrapped to ease financial strain on citizens.
Nhlanhla Ndamase, who lives in Kempton Park, Ekurhuleni, said she was more concerned about the burden of schools fees and medical costs.
Although, she did not reveal the name of the school, Ndamase said the school fees was stressing because she sometimes delay in paying the fees.
On medical bills, she said “I mean we all know that children are in and out of hospitals because they are fragile. They cost a lot, this is why we need the NHI,” she said.
Professor Richard Meissner, head of the Political Science Department at UNISA, told IOL that citizens' reliance on private services undermines the role of municipalities and public institutions in delivering basic services.
“This creates a vicious cycle where poor service delivery leads to increased dissatisfaction and reduced trust in the government, further weakening the public sector’s ability to raise revenue through taxes,” he said.
Meissner added that if people do not see “value for money,” they seek alternatives and reduce their reliance on municipal services, gradually eroding municipalities’ income.
He warned that the upcoming tax hike could lead to higher living costs, reduced purchasing power, increased debt pressures, and food insecurity, particularly for female-headed households facing heightened costs for transportation, school supplies, and food.
Regarding service delivery issues, the City of Johannesburg led by Mayor Dada Morero has promised to improve its standards.
This commitment follows President Cyril Ramaphosa’s offer of presidential intervention to help local leaders address their challenges, as he expressed disappointment with the city's current state.
IOL Politics