Kumar: Councils lose more than $280K monthly
Municipal councils around the country are losing $280,609 per month in revenue as a result of the waiver of market fees, said Minister for Local Government Premila Kumar.
Suva City Council lost $92,350 in revenue while Nausori lost $60,000. The waiver of market fees was for vendors with two or less stalls. This was done to help vendors deal with the impact of COVID-19.
“Municipal councils are encouraged to strengthen other revenue base such as rates collections, imposing of fines such as illegal dumping of rubbish, illegal building extensions, littering in public places, illegal offloading of containers, prosecution and booking fees to compensate for the loss,” Ms Kumar said. Municipals councils have also not been able to hire out council halls and sports grounds. Ms Kumar said some businesses had closed affecting business licence fees. She said eight business in Labasa had closed.
“At this time it is important to remember that councils need to continue delivering essential services such as garbage collections and general keep ups,” she said.
With rates being a municipal council’s biggest earner, rate collection had been very different.
Suva had been able to collect 87 per cent of its rates compared to 44 per cent in Nasinu. Ms Kumar said it was important for those who could pay rates continued to do so.
At the end of March, municipal councils had been able to collect $21 million in rates, while $13 million remains uncollected.