Explain the purpose of water tariffs, how to calculate the VAT exclusive tariff, and the total cost of water for a household in Maruleng Municipality.

From Table 1, for consumption $>20 \text{ kl} - 35 \text{ kl}$, the tariff is R13.66 per kl (VAT Inclusive).

VAT is 15%. To exclude VAT, divide the VAT inclusive price by $(1 + \text{VAT rate})$.

Rounding to two decimal places:

• First 6 kl: $6 \text{ kl} \times \text{R}0.00/\text{kl} = \text{R}0.00$
• Next 24 kl (from $>6 \text{ kl}$ to $<30 \text{ kl}$): $24 \text{ kl} \times \text{R}4.10/\text{kl} = \text{R}98.40$
• Next 30 kl (from $30 \text{ kl}$ to $<60 \text{ kl}$): $30 \text{ kl} \times \text{R}10.15/\text{kl} = \text{R}304.50$
• Remaining 2 kl (from $60 \text{ kl}$ to $62 \text{ kl}$): $2 \text{ kl} \times \text{R}18.58/\text{kl} = \text{R}37.16$
• Additional charge for using more than $60 \text{ kl}$: R90.80

Rounding to two decimal places:

Khosa paid.
Dr. Khosa paid R619.92. The calculated correct amount is R610.49.
Since R619.92 $\neq$ R610.49, the municipality did not charge him correctly.

The municipality charged Dr. Khosa incorrectly.