Chronicle Editor
Auxilia Katongomara, Chronicle Reporter
THE Bulawayo City Council has said local companies selling their goods and services in foreign currency will continue paying their bills in RTGS$ despite suggestions to charge them in foreign currency.
The local authority however, said residents who purchase stands which are pegged in foreign currency would be charged using prevailing rates to the United States dollar.
This comes as the local authority last month began charging international and regional entities operating in the city in foreign currency as a means of improving forex revenue.
In an interview, BCC finance committee chairperson Councillor Silas Chigora said local companies would be exempted from paying in foreign currency.
“The companies that are receiving foreign currency are going to be paying in forex. Mostly these are NGOs and companies that are coming from outside that are funded in forex. Locals will continue paying in RTGS$,” he said.
Clr Chigora said despite calls from stakeholders to charge in forex companies and service stations in the city which are trading in foreign currency, their policy targeted funded entities only.
“What we consider is that is he funded not what he is charging because we have a lot of shops charging in forex. As long as these are local companies that are not funded from outside they will continue paying in local currency,” said Clr Chigora.
He said the local authority had identified some residential stands to be sold exclusively in foreign currency to boost their coffers but locals were allowed to pay in the local currency.
“We have things that we are charging mainly in forex like land but if you are going to pay in RTGS$, we now have a rate of 2,5. So, locals can pay at the prevailing USD/RTGS$,” said Clr Chigora.
He said in spite of the local authority giving out a 50 percent incentive, foreign currency inflows were still too low.
The local authority recently called for an urgent financial review meeting to discuss with residents and other stakeholders the way forward with regards revenue collection and payment methods.
BCC Finance Director Mr Kimpton Ndimande said the city’s finances were in the red attributing the situation to delays by the Government in approving their budget, inflation and demand for foreign currency by suppliers. — @AuxiliaK
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