Vic Falls SMEs cry foul over rates

06 Aug, 2017 - 02:08 0 Views

The Sunday News

Leonard Ncube, Victoria Falls Reporter
SMALL businesses in Victoria Falls have approached the municipality to plead for a downward review of water charges, arguing the rates were too exorbitant and stalling their efforts to grow.

A majority of small and medium enterprises reportedly owe more than $10 000 each in unpaid water and rates and they have blamed non-payment on lack of business and exorbitant charges.

The businesses said it was unfair for them to be put in the same bracket with big players such as hotels and retail shops as their business base was different.

Recently they told municipal management that they were failing to pay because business was low.

They accused the council of selective consultation during budget meetings saying this resulted in their views not being captured in the process.

“We are here to consult council on rates and water. Our businesses are charged using the same bracket regardless of size and type of business hence we struggle to pay,” said Mr John Sianaka who chaired the meeting last week on behalf of the traders.

One participant challenged the local authority to consider the economic challenges facing the country when planning its budget.

“We are small businesses and we can’t be rated as big businesses. Let’s consider the economic situation. Honestly you can’t charge us the same way you charge big players. We all want to pay but we can’t afford,” she said.

The businesses said they are made to pay licences of $600 per year which they said were high compared to other towns.

They also accused the council of using estimates effect charges with one participant saying his monthly water bill sky-rocketed from $65 to $400 in one month.

In response, Town Clerk Mr Ronnie Dube said the town’s compliance was 85 percent and encouraged all ratepayers to pay for the local authority to be able to provide services.

Town treasurer Mr Neville Ndlovu justified the rates saying there were some cost drivers such as distance of Victoria Falls from major cities, nature of economic activity and financial base.

“We procure our demands from Bulawayo or beyond while at the same time we have a big status of a city yet we are small in terms of size. This together with the fact that we are a tourist area makes us expensive because a lot is expected,” said Mr Ndlovu.

In 2015, the local authority clashed with hotels and tourism players over water charges and rates which the ratepayers said were too exorbitant.

The two parties finally reached a consensus when the hotels agreed to make a payment plan after a Government intervention.

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