The Harare City Council (HCC) in its latest budget recommendations which have been approved by the full council is set to implement massive cuts in rates. Water rates on commercial properties will be slashed by 50 percent while interest on outstanding rates owed by domestic users will be scrapped completely. Fixed charges for domestic users will be scrapped as well. Part of the proposed budget document reads:
- That interest on all domestic consumer accounts be written off upon fulfilment of the terms and conditions of an agreed payment plan;
- That fixed water charges be removed for all domestic consumers.
- That fixed water charges be reduced from the current US$50 to US$25 for industrial and commercial customers.
- That property tax for commerce and industry be reviewed downwards by 15 %.
- That all business licencing fees be reduced by 15 %.
- That all market fees be reduced by 15 %.
Speaking on the rates, Mayor Bernard Manyenyeni said:
We were getting more and more bookish with $709m debtors. We stand to write-off over $30m interest. It’s practical not populist.
Both domestic and commercial ratepayers are battling under a failed economy.
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The fixed water charge has ceased to serve its purpose. The idea of fixed water charges was to maintain the water hardware. The state of the water pipes in the City of Harare shows that the money was never used to repair and maintain the water hardware. The move to scrap the fixed water charges is a welcome development.