GOVERNMENT has reduced by ZWL135 million penalties and interests owed by Harare City Council (HCC) to the Zimbabwe Revenue Authority (Zimra) in a bid to enhance council’s capacity to deal with the current water crisis.
In a statement released on Wednesday, Finance minister Mthuli Ncube expressed appreciation at HCC’s efforts towards the provision of clean and safe water to the city in order to avert the outbreak of diseases such as cholera and typhoid, hence the scrapping of penalties and interest owed by HCC to Zimra.
“Treasury appreciates the important role played by City of Harare in the provision of clean and safe water, sewage reticulation and refuse collection which contribute to the outbreak of diseases such as cholera and typhoid.
“In this regard, Treasury, in line with the provision of Public Finance Management Act, approved to write off penalties and interest owed by the City of Harare,” he said.
HCC has been lobbying government over the write offs.
Ncube further said the principal tax liability remained due and a payment plan was to be made with Zimra to clear the taxes.
“The principal tax liability remains due and payable in line with a payment plan agreed upon with Zimra,” Ncube said.
HCC owed about ZWL135 million in penalties and interest to Zimra.
