City of Tshwane Metropolitan Municipality v Cable City (Pty) Ltd

The City of Tshwane Metropolitan Municipality sought to recover regional services levies from Cable City (Pty) Ltd by relying on Government Notice R340 of 17 February 1987, issued under section 12 of the Regional Services Councils Act 109 of 1985. Paragraph 11(1) of the Notice purported to authorise municipalities to estimate the amount of levy probably payable by a levy-payer. Acting on this provision, the City estimated the levy allegedly due and issued summons for payment. The High Court, relying on earlier authority, dismissed the City’s claim on the basis that the Minister of Finance lacked statutory power to authorise estimation of levies. The Supreme Court of Appeal affirmed this decision. The City then sought leave to appeal to the Constitutional Court, arguing both that the Minister had the requisite power and that the Minister should have been joined to proceedings in which the validity of the Notice was considered.

The application for leave to appeal was dismissed with costs.

The case affirms strict limits on delegated legislative power and reinforces the principle that subordinate legislation must fall within the scope of authority conferred by the empowering statute. It clarifies that administrative convenience cannot justify extending statutory powers beyond their text, and it underscores the distinction in South African law between lawful calculation of taxes and unlawful estimation by unauthorised bodies.