Dunedin City Council has withdrawn a proposal to charge a $16 fee to not-for-profit groups who want to run sausage sizzles.
The idea was raised with councillors last week as part of the pre-draft annual and long-term plan meeting.
It also proposed a $30 fee for commercial operators and a $111 fee for every 10 stalls at a farmers market.
The fees were put forward as a way of helping meet the cost of policing food safety standards.
The idea of a fee for sausage sizzles drew criticism from ratepayers and one school principal challenged the idea saying, if it was introduced, the money from the first 40 sausages sold would go straight to the council.
Green Island school principal Steve Hayward said the extra charge was unjustified as the health risk from pre-cooked sausages is minimal.
City council development services manager Kevin Thompson says the council has now realised the revenue raised from the proposed fee wouldn't justify the burden it imposes on fundraisers and is not going to pursue the idea.