Sec 25 (5) “The state must take reasonable legislative and other measures, within its available resources, to foster conditions which enable citizens to gain access to land on an equitable basis.”

The LTMC “reasonable legal measures” are to temporarily increase the rates on unused land and to stop rating improvements. This will mean that unused land becomes affordable to all, State land price subsidies are phased out, people are not penalised for building things and the proletarian, landless life-style comes to an end.

Sec 229 (2) “The power of a municipality to impose rates on property, surcharges on fees for services provided by or on behalf of the municipality, or other taxes, levies or duties (a) may not be exercised in a way that materially and unreasonably prejudices national economic policies, economic activities across municipal boundaries, or the national mobility of goods, services, capital or labour…

THE LTMC response is to require that Municipalities demanded that the National government stops prejudicing national economies policies (within Municipal boundaries) by gradually cancelling hard-earned income taxes and VAT.  This is considered unreasonable and illogical on the basis of that “what is good for the goose is good for the gander.  That is given credence by the forgotten Schedule 4 Section XXV of the Interim Constitution which states :

“The National Government and provincial governments shall have fiscal powers and functions which will be defined in the Constitution”

Sec 237 All constitutional obligations must be performed diligently and without delay.


This will be an adjunct to Municipal tax reform in capturing all land rents from beneath improvements as well as from unused land.

This is justified when income taxes and vat laws are gradually repealed.

 It heralds South Africa as a tax-sanctuary, like Hong Kong and Singapore. Not a tax-evasion haven like the Bermudas. These are unsurpassed in creating jobs and individual wealth. They presently enjoy five times the GDP of South Africans (at purchase power parity) but do not have any mining or agriculture sectors.

 A tax-free environment will enable South Africa to become one of the most desirable international destinations for investors.