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Brighton Gumbo Business Reporter
BULAWAYO City Council has extended up to the end of the year a 50 percent discount on money it is owed in outstanding rates by companies operating in the city, the Mayor Councillor Martin Moyo has said.
A number of companies are failing to pay rates and other service charges and are blaming this on the prevailing harsh economic climate.
Clr Moyo told Business Chronicle yesterday that council was sensitive to the plight of companies operating in the city hence it was offering the companies a 50 percent discount on rates on bills accrued as from December 2014.
“Companies are being asked to pay just 50 percent of what they owe council as from December last year,” he said.
Clr Moyo said the move was aimed at giving some relief to companies, most of which were struggling to survive as a result of the prevailing economic climate.
He said council was doing all within its power to create an enabling environment for companies to operate as well as assist in reducing the cost of doing business through facilities such as offering discounts on rates.
Clr Moyo said apart from writing-off debts, the council was spreading the payment for commercial stands over 18 months.
“There’s a standard requirement where council allows the buyers of commercial stands to pay a 35 percent deposit and the remaining balance is paid over 18 months,” he said.
Bulawayo, which used to be the country’s industrial hub, was the worst affected by the economic challenges experienced during the last decade and has as a result seen a number of companies closing while the remaining few have drastically scaled down their operations.
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