-ratepayers owe council ZwG130million
Tonderai saharo
The harsh economic environment currently prevailing in the country has resulted in Masvingo city council witnessing a decline in its revenue collection as companies are struggling to keep afloat.
Companies that are still operating are facing liquidity challenges due to over taxing and low business across all sectors.
“Most companies are ’just’ operating and most of them are in the negative, there is no business yet the government keeps increasing taxes, we are the most taxed country in the world and this cascades to payment of rates to local authorities.
“One prioritises food and basics and things like rates end up suffering. There is need to introduce market friendly policies and taxes so that businesses pay and workers are able to pay rates to councils,” James Phiri who operates a technology company in the industrial area.
Masvingo city council’s finance director Danister Jori said as of August 2024 the local authority recorded an 8.52 percent decline in its monthly collection efficiency.
In July the local authority recorded 71.03 percent which plunged to 62.51 percent in August.
This has resulted in a ballooning debt of ZwG 130, 905 815.45 that the local authority is owed by residents and ratepayers
“The report of the Finance Director on debtors and debt collection covering debtors by category that is low density and high density residential, commercial, Government Departments.
Debtors as at 30 July 2024 owe ZwG 130,905,815.45 which was on the increase due to non-payment of Council bills.
“Council recorded a collection efficiency of 62.51% as compared to 71.03% in July 2024,” Jori said.
The distributions of debtors by category showing the percentage of debt owed by each category shows commercial owing 24%, industry 9%, high density residential 21%, medium density residential 5%, low density residential 14%, institutions 7% and Government Departments 19% and land sales 5%.
“There is a need to restore the confidence of ratepayers in Council for effective collection strategies,” Jori said.
As the council grapples with financial challenges, the local authority is calling on residents and the business community to meet their obligations in overcoming the ever ballooning debt.
Future of the council’s services solely depend on the collective effort in addressing the growing debt crisis and improving collections rates.
