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Towns and cities stifled by growing rate arrears

September 4, 2024 12:31 pm

The outstanding town rates across Fiji have reached $67.2 million as of August 30th this year.

Local Government Minister Maciu Nalumisa has disclosed this in Parliament today.

He says that 20.7 percent of these arrears, amounting to $13.9 million have accumulated over the past one to five years.

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Nalumisa also reveals that 2,850 ratepayers are facing genuine financial difficulties, while 10,869 ratepayers who are capable of paying their dues are not fulfilling their payments.

In response to this growing issue, the Ministry of Local Government is implementing various measures to recover the outstanding funds.

The Minister states that the Ministry is facilitating online payments and pursuing legal action when necessary to recover longstanding arrears.

“Some of the implementations and strategies for the council to encourage rates payments. This includes the extension of the discount period I have already stated, payment of rates by installments, engaging with other major landlords, as well as exploring other online payments like MPaisa platform which are currently available as well as other payments with other banks such as BSP as well as taking up these through the small claims tribunal for more than $5,000 even also placing cavit on those properties that have been there for some time, as well as arrangements with banks.”

This adjustment, Nalumisa says is expected to provide some relief to ratepayers struggling to meet their financial obligations.

The Suva City Council, which has the largest ratepayer base with 11,468 ratepayers faces challenges with 83 percent of its ratepayers being residential.

Similarly, the Nasinu Town Council has 11,377 ratepayers, of which 10,953 are residential.

The Lautoka City Council, which has the third largest ratepayer base with 8,169 ratepayers also deals with a high proportion of residential ratepayers.

Nalumisa states that the delay in rates payments is hampering the ability of municipal councils to deliver services and carry out major projects.

He is urging ratepayers to recognize their responsibility in contributing to the development and maintenance of strong infrastructure in their towns and cities.

As of July 12th this year, the interest on rate arrears has been reduced from 11 per cent to five per cent, further easing the financial pressure on ratepayers.

The Minister has reiterated the government’s commitment to recovering every dollar owed, ensuring that municipal councils can reinvest in the communities that need it most.