The City of Cape Town has surrendered income of more than R1 billion for the 2013/14 financial year by granting exemptions, reductions and rebates on municipal rates.

Mayoral committee member for finance Ian Neilson said the income that could have been generated for the city.

“The purpose of these rebates is to ensure that rates are affordable to our residents, and that owning a home does not become prohibitive to those on low or fixed incomes.

“The income that we forgo must alleviate poverty, but it must also create opportunities. We urge all of our residents to make use of the opportunities which are unlocked as a result of the rebates. We need the people of Cape Town to work with us to make progress possible, together.”

However, provision is made in the budget for the forgone income.

According to the city’s integrated development plan, which guides annual spending, the city’s rebates policy is intended to provide a “measure of poverty alleviation” for those who qualify. The combined value of reductions for residential and public service infrastructure amounts R769 million.

Neilson said every residential ratepayer in Cape Town received some form of a rebate. A maximum reduction of up to R200 000 of the value of a property is granted to every individually valued residential property. Lower-value properties receive a greater proportional rates rebate and benefit poorer people the most.

The City of Cape Town launched an extensive information programme this year to encourage non-governmental organisations to apply for rebates on their rates, solid waste, water and sanitation before the August 31 deadline for the 2014/14 financial year.

Suzette Little, mayoral committee member for social development, says: “It is important that we do everything in our power to ensure that our ECD centres are able to fulfil this very crucial role in the lives of our children, in order to create a truly opportunity city. The money that they would be able to save courtesy of the rates rebates will go a long way towards enhancing the current level of education provided at the centres.”