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Marondera council defends 289% tariff hike

BY JAIROS SAUNYAMA Marondera Municipality has defended its 289% tariff hike saying it was justified given the current economic conditions. The local authority is under fire from ratepayers through their associations, who are accusing it of not honouring the resolutions of last year’s budget consultative meetings. In some sectors, the tariffs were hiked by more than 600%, especially business licence fees. Marondera council finance director John Kachingwe said the average licence fee hike was 289%, but other sectors would be charged “outside the figure”. “The average increase was 289%. However, it could be specific areas that were considered outside the average. But these can be brought to our office for clarification,” Kachingwe said. “An average might mean some tariffs were below while others above. However, the bottom line remains 289%. “For example, electricity was increased by more than 1 000% in 2020 and any recovery of electricity charges of 289% falls below cost recovery. If anyone has more than 289% direct them to our offices.” According to council, the Local Government ministry has already approved the proposed 2021 budget. A “big” bakery or supermarket is now paying a total of $340 000 as licence fees, while medium supermarkets are forking out $118 000. Marondera Urban Business Forum director Emmanuel Danha said council erred in imposing the new tariffs at the same time renegading on what was agreed during the last budget consultative meetings. “According to the December budget consultative meetings, we agreed on certain tariffs,” Danha said. “We are hearing that we pegged the increase at 289%, that is not it. To make matters worse, some licence fees were increased up to more than 600%. They did not even consider that there is no business at all due to COVID-19. “This local authority has the highest licence fees in the country compared to major towns and cities like Harare and Mutare. We will engage council to review this as we are chocked as businesspeople.” The local authority reported that last year, it didn’t record meaningful revenue due to the COVID-19 pandemic with ratepayers owing in excess of $25 million.

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