Staff writer
Following measures by Harare City Council to bring in three new levies, Combined Harare Residents Association (CHRA)and Zimbabwe Taxpayers Platform (ZITAP) have raised serious concern over the development which they say comes after revelations of abuse of revenue collected by the local authority.
In a statement, the two organizations urged the local authority to ‘stop introducing the proposed levies and prioritize expenditure it’s current revenue streams.
“The new levies come following revelations of fiscal abuse of revenue collected by the city through unreasonably high salaries for the local authority’s executives with the surrending of key revenues streams and mandates to private companies,” read the statement.
CHRA and ZITAP said the introduced levies will result in double taxation of residents and ratepayers.
“The levies introduce double taxation as we believe revenue is being collected which could pay for the purported expenditure.Particularly we note that revenue being collected for water rates is not being ringfenced for the service, resulting in it being open to abuse or diversion to non-priority expenditure.
Harare city council was urged to use other financial sources to find infrastructure development.
“We as CHRA and ZITAP note that other sources of funding exist that could be used for infrastructure development in particular intergovernmental fiscal transfer (GFTs) commonly known as devolution funds which are mandatory under section 301(3) of the Constitution of Zimbabwe.
The two organizations said these levies taxes will further burden citizens who are already excessively taxed.
“This new layer of taxes at local government comes as Zimbabweans experience one of the most burdensome tax regimes on the African continent with the third highest income tax after South Africa and Senegal at 41.2 percent.”
The two organizations made some recommendations to the local authority and government.
“The city of Harare must stop introducing the proposed levies and prioritize expenditure from its revenue streams and improve collection efficiency on existing rates and tariffs.
The central government must stop interfering in the running of the city , including transferring revenue collection and service delivery mandates from the city to parastatals like ZINWA and private companies.
The central government, particularly the ministry of Finance, must equitably share revenue raised nationally between the central government and local tiers of government for local authorities to invest in capital expenditure and infrastructure, including the 5 percent devolution funds mandated by sections 298 (1)(b)(i) and (ii) and 301(3) of the Constitution of Zimbabwe.The proposed tax reform by the minister of Finance should consider lessening the tax burden on ordinary citizens.”
The city of Harare has proposed to introduce water, street lighting and ambulance levies.