Govt Warns Councils Against Punitive Licence Charges

The Government, through the Minister of Local Government and Public Works, Daniel Garwe, has warned local authorities against imposing excessive licensing fees that discourage investment and make it harder for businesses to operate.

He said councils must comply with Government directives aimed at improving the ease of doing business.

Speaking to Zimpapers in Victoria Falls recently, Garwe warned that councils which continue to disregard Government directives on licensing fees will face action.

“The President has now directed all the local authorities, all the Government, various Government ministries to have licensing fees, to charge rates that encourage people to invest in them,” said Garwe.

“If there is any local authority which is not paying attention to that, we humbly request people to bring the names of those local authorities so that corrective measures can be put in place.

“But all of us are supposed to adhere to the new measures that were pronounced by the Government.

“From the beginning of this year, the government has been promoting the ease of doing business, by way of slashing rates, ensuring that licensing fees are affordable and acceptable to the communities, to the business people and everybody else.”

Garwe’s remarks follow complaints that some local authorities are continuing to charge high fees for operating licences, parking and other levies despite Government directives aimed at reducing the cost of doing business.

Business owners, particularly those in the small and medium-sized enterprise sector, have expressed concern that the charges are excessive and are hindering growth.

Some say the costs have forced businesses to operate informally, while others have been driven to close altogether.

“Corrective measures will be taken without fear or favour. No council is above Government policy,” said Garwe.

Earlier this year, the Government introduced measures to reduce licensing fees across 12 key sectors of the economy, that is, manufacturing, retail, tourism, transport, agriculture, mining, construction, information technology, health services, education, real estate and hospitality.

The reductions also apply to trade licences, parking fees, street vendor permits and a range of administrative charges imposed by local authorities.

The Government says lowering these costs will encourage more businesses and traders to operate formally, helping to broaden the tax base while attracting greater domestic and foreign investment.

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