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Kwekwe blames Zimra for revenue fall

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KWEKWE City Council’s revenue collections from shop licence fees has shrunk by 50% as shop owners are reportedly shunning paying fees for fear of exposing their businesses to Zimra.

KWEKWE City Council’s revenue collections from shop licence fees has shrunk by 50% as shop owners are reportedly shunning paying fees for fear of exposing their businesses to the Zimbabwe Revenue Authority (Zimra).

BY BLESSED MHLANGA

Mayor Matenda Madzoke attributed the sharp drop to Zimra which recently ordered local authorities not to issue trading licences to any operator who does not have a tax clearance certificate. “Since Zimra directed us not to issue shop licences to shop owners who do not have tax clearance certificates, our revenue dropped sharply compared to previous years,” Madzoke said. “We have failed to collect over $500 000 because of the involvement of Zimra in our operations. I feel that it’s wrong for them to use us that way.” Deputy director of health services John Bandama recently told a council meeting that most small-scale business operators were now playing hide-and-seek with the local authority as they did not have requisite documents. He said council revenue from trading licences had significantly dropped this year as compared to last year when council collected over $1,2 million in the first month of the year. “It is because of the conditions which we have been given by Zimra that we have recorded a significant fall in revenue collection this year. “Where we should have already collected over $1,2 million, council only has $700 000 as mostly small business shun paying for licences, while others are still in the process of getting clearance which process is in my view unnecessarily long,” Bandama said. He added: “We have now started closing shops for those who have not paid even if they are still sorting their papers with Zimra because we cannot continue to allow them to operate without proper documentation.”