Govt owes millions but Zimra garnishes HCC revenue

via Govt owes millions but Zimra garnishes HCC revenue | The Zimbabwean 8 July 2014 by Thabani

A fierce battle is brewing between the city fathers and government over garnishing of the city’s income by the Zimbabwe Revenue Authority (Zimra).

On June 13, Zimra instituted a garnishee order to recover money it is owed by the local authority.

Highly placed sources at Town House told The Zimbabwean that about $43m was taken in the process thereby compromising the city’s financial position to pay outstanding salaries for the months of May and June.

“I do not expect the government, which owes us millions of dollars, to garnish our only source of revenue (rates). How do they expect us to deliver services as well as pay our workers? This is a clear ploy to incapacitate and sabotage the performance of this council,” said Ward 28 Councillor, Wellington Chikombo at a recent council meeting.

The young MDC-T councillor, who also chairs the human resources and general purposes committee, blamed government for causing the financial woes paralysing many councils around the country by directing them to write off millions of dollars owed by residents ahead of last year’s general election.

The debt has since ballooned to $254 with residents owing the city $105 million, government $16m and industry and commerce $130m. Satellite towns of Chitungwiza, Norton, Ruwa and Epworth are owed a combined $3.4m.

The deputy mayor, Ward 14 Councillor Thomas Muzuva, weighed in demanding that government order ZIMRA to write off debts accrued before council exercised the government order.

“What I know is that 15 percent of every bill charged by council is taken as Value Added Tax (VAT) by ZIMRA and when we implemented the government’s order (to write off debts), Zimra did not do the same to us, so where do they expect us to get the money from?” Muzuva questioned. The Ward 13 councillor, Peter Moyo said: “It boggles my mind to hear that the ministry of Finance orders Zimra to take the little that we have at a time the economy is on its knees yet we are all government arms.”

Moyo suggested that government must also garnish parastatals. “It has become a norm that whenever the central government is broke it resorts to council and takes money irrespective of whether its money meant for service delivery or to pay workers. This is literally cutting our legs so that we do not deliver,” he said.

Mayor Bernard Manyenyeni said Parliament was addressing the issue of money taken by Zimra. “In as much as we demand payment due to us, let us also comply. As council we cannot be asking people to pay us while we do not pay Zimra,” said the mayor.