Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE Bulawayo City Council (BCC) has resolved to maintain its 2024 commercial non-domestic property tax tariffs for 2025, foregoing potential revenue of over US$14 million.
The decision has been welcomed by residents and ratepayers, who view it as a pragmatic and balanced approach to economic governance.
This development follows the Government’s recent approval of BCC’s 2025 budget and comes after extensive consultations with the local business community and residents regarding the affordability of the proposed new rates.
The Ministry of Local Government and Public Works approved the city’s 2025 financial plan, which had initially included revised non-domestic property tax tariffs reflecting a 127 percent increase from 2024 levels.
However, according to the latest Finance and Development Committee report, the local authority opted not to implement the higher tariffs following widespread concerns about their potential impact on business sustainability.
“Approved non-domestic property tax tariffs were 127 percent higher than the 2024 tariffs. The new approved tariffs were not implemented for billing as they significantly raised the rates charges,” said BCC Finance Director, Mr Tennyson Mpunzi.
The decision followed detailed engagements between Council and representatives of the business sector, including the Confederation of Zimbabwe Industries (CZI) and the Zimbabwe National Chamber of Commerce (ZNCC), facilitated by the parent ministry.
“Engagements between Council and the business community, represented by CZI and ZNCC and facilitated by the parent ministry, revealed that businesses were seeking a reduction in the non-domestic rates tariff, not an increase.
“In light of these engagements, it was recommended that the tariff for non-domestic (commercial) rates be maintained at 2024 levels. Maintaining the tariff results in a loss of income amounting to US$14 331 139,” he said.
Council subsequently resolved to recommend: “That the 2024 commercial non-domestic rates tariffs be maintained in 2025 and that Council foregoes income of US$14 331 139 in respect of commercial non-domestic property tax.”
The resolution has been positively received by residents and ratepayers, who say it reflects a responsible and people-centred approach to governance.
Mr Andrew Ndlovu, a local resident, welcomed the move.
“We support Council’s decision to put people and jobs first. While revenue is important, creating a hostile environment for business would have resulted in long-term damage. This approach helps retain jobs and keeps services running without placing undue pressure on the private sector,” he said.
He said that the business-friendly stance, combined with the Government’s endorsement of the 2025 budget, positions BCC as a responsive and forward-thinking authority, committed to stabilising the city’s economy while managing its own fiscal constraints.
Meanwhile, BCC debtor records show that as of the end of April 2025, the figure stood at ZWG1,5 billion, according to balances on the system. At the end of March 2025, the debtors stood at ZWG1,4 billion, indicating an increase of ZWG103 million — a six percent rise.
Turning to debt collection, a total of 182 960 accounts were billed US$10,2 million in April, with an opening debt of US$115 101 085,82 in March.
It was noted that collection efforts were focused on recovering the current month’s billing plus a portion of arrears using available resources.
“62 percent of the billed amount was collected, implying that 38 percent was not paid. The 38 percent defaulters represent 68 525 properties, which require close follow-up. The existing teams managed to contact 63 045 consumers for payment, and these efforts yielded receipts totalling US$3 164 279,27.”
