No US dollar rates, local authorities told

THE Government says that local authorities are not allowed to peg rates in US dollars only, but should use multi-currencies to allow ratepayers to pay using the currency of their choice at the prevailing auction rate.

Most councils ,including Harare City Council ,had already pegged some of its rates in US dollars with its maternity fees now US$25, children consultation fee US$3, adults US$5 although there is an option for local currency payment using the prevailing interbank rate.

Speaking on the sidelines of a town clerk’s forum organised by the Urban Councils Association of Zimbabwe (UCAZ) last week, Local Government and Public Works’ chief director for urban local authorities Ms Erica Jones said: “The way it operates is that local authorities don’t charge US dollars, it charges in Zimbabwean dollars, but people are permitted to pay in US dollars using the auction rate,” she said.

“If a cubic metre of water costs $100, a local authority can then accept US dollar equivalent at the rate, but it cannot charge in US dollars and convert to local currency.” She said that councils, which want to cushion themselves from inflation were free to submit supplementary budgets.

Ms Jones said the process for local authorities’ budgets in Zimbabwe is governed by the Public Finance Management Act, which is overseen by the Minister of Finance and Economic Development.

“The act requires the Finance Ministry to produce a budget strategy which is the basis of the budgets for all the three tiers of Government,” she said.

“The Government is busy working on its National Development Strategy (NDS) which will replace the Transitional Stabilisation Programme. That NDS will have in it the conditions for budgeting 2021.”-herald