By William Milasi
Kwekwe City Council has resolved to introduce a dual billing system to facilitate for the payment of rates in foreign currency.
Kwekwe City Council Finance Director Rejoice Maweni said council decided to rebase its initial $471, 8 million budget so as to accommodate for the payment of services in US dollars.
She told small scale traders at a meeting recently held at Town House that the 2020 budget has significantly devalued due to inflation that it is proving difficult for the city to continue offering services if it doesn’t charge for tarriffs in USD.
“Our budget has since devalued from equivalent of US$28, 1 million to an equivalent of US $5, 69 million,” she said of the budget.
Maweni, elaborated that it was proving difficult to implement the budget as council is, “not generating foreign currency which the market is demanding, as a result accessing fuel has been a challenge. All products are now qouted in US$ or equivalent in Zim currency.”
Given the above factors, the only logical route for council to take was to rebase the 2020 budget.
Maweni said it is legal for the council, “to bill and offer its services and sell goods in both Zimbabwe dollar and foreign currency at the ruling exchange rate.
“Council can therefore rebase its tariff structures in USD and payment can be made using either foreign currency or Zimbabwean dollar at the prevailing exchange rate.”
According to Statutory Instrument 185/2020, dual pricing, quoting and offering of prices and services in both Zimbabwe dollar and foreign currency at the ruling exchange rate is allowed.The proposed figures will see shop licenses which are pegged at zwl $7500 going for USD$250, corner shops and tuckshops are paying zwl $4500 which is equivalent to USD 150, the same pricing goes for eco cash and creches in low density areas.