21 Dec 2018
Community Water Alliance note with concern the burden imposed on Harare residents by the Zimbabwe Revenue Authority (ZIMRA) through legacy debt.
ZIMRA is doubling its legacy debt on a monthly basis and this is crippling capacity of City of Harare to generate revenue required for fulfilment of the right to safe, clean and portable water. The fees are paid by residents and the yoke is too heavy on the neck of citizens paying rates in Harare.
An assessment by Community Water Alliance revealed that legacy debt and interest charges were doubling on a monthly basis e.g $25 million would increase to $50 million over one month. We appreciate that the operations of ZIMRA are lawful but these actions have crippled City of Harare’s capacity to raise revenue needed for critical areas like water and sanitation.
Community Water Alliance has noted that currently City of Harare owes around $170 million legacy debt to ZIMRA. This amount allegedly increased through absurd interest charges.
If the central government cannot hive-off the legacy debt as it has done with other banks and parastatals, then law makers need to revisit these laws and ensure Local Authorities do not carry a heavy burden.
