Firms trading strictly in forex to pay for BCC charges in USD

BUSINESS entities trading strictly in foreign currency in Bulawayo are now required to pay local authority’s charges in United States dollars as part of the city council’s strategies to enhance foreign currency receipts.

Targeted business ventures under the scheme include fuel service stations and cooking gas suppliers.

The development comes as the Government this week directed defiant local authorities and state agencies to charge fees and levies in local currency saying demanding foreign currency is in violation of the country’s laws.

It said demanding forex does not only militate against Government policy to stabilise the economy but also piles a burden on ordinary people who do not have access to forex.

The Ministry of Finance and Economic Development said under the National Development Strategy 1, the Second Republic has made considerable progress in fostering macro-economic stability by implementing a broad range of fiscal and monetary stabilisation measures.

The measures have resulted in notable stability in the economy, the exchange rate and general prices of goods and services.

According to a council report on the Finance and Development committee tabled before a full council monthly meeting on Wednesday, Finance Director Mr Tennyson Mpunzi said council planned to notify petroleum firms of its position beginning Wednesday, 28 June 2023.

Under strategies to enhance revenue collection and increase forex receipts, on 7 June 2023, the council made several resolutions and undertook actions on companies trading strictly in forex to pay for the charges in the United States dollars.

“Work in progress — the department would start engaging fuel service stations and gas notifying them on the new Council position beginning Wednesday 28th June 2023,” reads part of the report.

Added the report, “Advertising fees, mining claims, rentals and royalties, auctioning of scrap and fuel sales to staff be paid in USD.”

Council is also implementing a resolution to charge water reconnection fees strictly paid in USD and the charge is pegged at US$20.

Based on the report, council said it was possible for billing be in United States dollars adding that at payment consumers be allowed to pay using a currency of their choice

“Work in progress: engaging the service provider. Indications were this was possible. Aim was to begin billing from 1st July 2023,” it noted.

During a Special General Purposes meeting held on 1 June, the council resolved that its Zimbabwe International Trade Fair Pavilion be used for receipting.

According to a confidential report, the committee said an assessment of the requirements for the pavilion was done on May 16 this year.

The idea of using the ZITF pavilion is to decongest the Revenue Hall in the city centre and the ZITF office would be “a supreme cash receipting point.”

However, the pavilion requires $74 625 600 to be refurbished in order to meet the requirements of a cash and revenue collection point.