The Manica Post

Council, residents clash over high rates

- Luthando Mapepa Chipinge Correspond­ent

CHIPINGE Town Council is headed for a showdown with the residents and local entreprene­urs who are pushing for major slash of operating licence fees that have been hiked by over 400 percent.

The aggrieved stakeholde­rs are accusing the local authority of hiking tariffs by an unjustifie­d margin. The small-to-medium-entreprene­urs (SMEs) argued that the local authority ignored their input during the 2020 budget consultati­ons.

They said their situation had been worsened by the growing number of informal traders selling competing products in front of their shops.

They said most of them were resultantl­y struggling to honour their dues owing to the harsh operating environmen­t.

They said while hyperinfla­tion continued to negatively impact their businesses and local authority was making their situation worse by coming up with unrealisti­c licence fees and rentals.

A survey by The Manica Post in the central business district (CBD) revealed that most SMEs were spoiling for a fight with the local authority over high tariffs.

Mrs Mariam Chirimambo­wa, who operates a grocery shop in the CBD, urged council to slash the tariffs pegged beyond their reach.

“We have a situation where vendors sell competing products in front of our shops, so the operating environmen­t is not even,” she said.

“Council should revise these fees. The licence fees were hiked by over 400 percent and, honestly, we don’t do business attaining such profit margins to be able to pay these rates,” she said.

The Chipinge Business Community chairperso­n Mr James Gabaza said the shop licensce fees were hiked without proper engagement of all parties involved.

“We held a meeting with the council over shop licences but we were shocked to discover that fees were hiked without consulting us.

“Generally, business is down, so it is difficult for business operators to keep up with the councils demands,” he said.

Chipinge Town Council chairperso­n Cllr Zivanai Nyakuchena tried to justify the newly imposed fees by saying reviews were pegged using the prevailing interbank rate.

“We are open to payment plans with all our clients. The rates increment is meant to keep up with effective service delivery demands and is also subject to the interbank exchange rate,” said Cllr Nyakuchena.

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