Harare (New Ziana) –The government has written off ZWL $135 million in tax penalties that the Harare City Council owes the Zimbabwe Revenue Authority (Zimra).

Finance and Economic Development permanent secretary George Guvamatanga said the write off was meant to reduce the burden on the local authority which is failing to provide adequate service to residents.

Guvamatanga said the penalties arose from unpaid tax obligations amounting to ZWL$32.41 million.

“Treasury appreciates the important role played by the City of Harare in the provision of clean and safe water, sewerage reticulation and refuse collection which contributes significantly in averting the outbreak of diseases such as cholera and typhoid,” he said.

“In this regard, Treasury has, in line with the provisions of the Public Finance Management Act, approved to write off penalties and interest owed to Zimra by the City of Harare. The principal tax liability remains due and payable in line with a payment plan agreed upon with Zimra.”

The latest assistance by the government follows another intervention last week when the local authority received ZWL$37.4 million to enable to deal with the water challenges in the capital, an amount which the council has however said was too little for the purpose.

City fathers have also lobbied the government to declare Harare’s current water crisis a national disaster to allow donors to intervene to salvage the situation.

The local authority has also urged the government to invest in new water sources arguing that this was the only solution to the perennial shortages.

Harare has been grappling with severe water shortages which have seen some suburbs going for weeks without the precious liquid, exposing residents to serious health hazards.

On Monday, the local authority shut down its biggest treatment plant Morton Jaffrey citing lack of chemicals needed to make the precious liquid potable, a development that saw the whole city going for over 24 hours without running water.

New Ziana