Government has written off $135 million owed to the
Zimbabwe Revenue Authority (Zimra) by Harare City Council as part of measures
to capacitate the local authority to deal with the current water crisis, an
official has said.
The debt comprised penalties and interest that council had
accrued.The write-off comes after Treasury last week released $37, 4 million,
including foreign currency, towards interventions to improve water access and
waste water treatment in the capital.
Government this week also took over Morton Jaffray
Waterworks to ensure residents access to potable water after Acting President
Kembo Mohadi facilitated the clearance of water treatment chemicals at the
border while the Zimbabwe National Water Authority (Zinwa) and District
Development Fund (DDF) chipped in with technical assistance.
In a statement, the Ministry of Finance and Economic Development
said: “Treasury appreciates the important role played by City of Harare in the
provision of clean and safe water, sewage reticulation and refuse collection
which significantly impact in averting the outbreak of diseases such as cholera
and typhoid. In this regard, Treasury, in line with the provisions of Public
Finance Management Act, approved to write off penalties and interest owed by
City of Harare,” the Treasury said.
“The principal tax liability remains due and payable in
line with a payment plan agreed upon with Zimra.”
The $135 million of penalties had accumulated over years
from a $30 million debt, leaving the city council owing the Government $170
million. Herald
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