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The Combined Harare Residents Association (CHRA) and the Zimbabwe Taxpayers’ Platform (ZITAP) have strongly condemned the City of Harare’s recent imposition of three new levies for water infrastructure, street lighting, and ambulances, citing concerns over fiscal mismanagement and double taxation.
By Vongai Masuka
In a recent statement, the organizations argued that the new levies come at a time when the city’s revenue collection is already under scrutiny, with allegations of unreasonably high salaries for executives and the transfer of key revenue streams to private companies.
“The levies introduce double taxation as we believe revenue is being collected which could pay for the purported expenditure,” the statement read.
“Particularly, we note that revenue being collected for water rates is not being ringfenced for the service, resulting in it being open to abuse or diversion to non-priority expenditure.”
The groups highlighted the availability of alternative funding sources, such as the Intergovernmental Fiscal Transfers (IGFTs), also known as devolution funds, mandated by Section 301(3) of the Zimbabwean Constitution.
They pointed out that only a meager 1.91% of the total allocated devolution funds had been disbursed to Harare as of November 2024, further burdening residents with the new levies.
The statement also underscored the broader context of Zimbabwe’s already burdensome tax regime, noting that the country has the third highest income tax in Africa after South Africa and Senegal, at 41.2%.
They listed a series of new taxes introduced since 2018, including the Intermediated Money Transfer Tax (IMTT), sugar tax, and fees on repatriation of deceased persons, and the recently proposed airtime tax.
Despite the Minister of Finance’s announcement of plans to cut taxes and regulatory fees for businesses, CHRA and ZITAP argue that the tax burden on ordinary citizens continues to rise.
The organizations have issued a four-point recommendation to address the situation:
-Immediate halt to the proposed levies: The City of Harare should prioritize expenditure from existing revenue streams and improve collection efficiency.
-End central government interference: The government should stop transferring revenue collection and service delivery mandates to parastatals and private companies.
-Equitable revenue sharing: The Ministry of Finance should equitably share revenue between central and local government, including the mandated 5% devolution funds.
-Tax burden reduction: The proposed tax reform should consider lessening the tax burden on ordinary citizens.
The statement was signed by Mr. Itai Zimunya, ZITAP Chairperson, and Mr. David Pasipenodya, CHRA Chairperson.
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