Harare City warned against billing in US dollars

Guvamatanga says import duty lift won't turn Zim into SA supermarket – The Zimbabwe Mail — **George Guvamatanga**

Finance Ministry secretary George Guvamatanga has ordered the Harare City Council to withdraw its notice of an intention to start billing in United States dollars which he describes as unlawful.

In a letter dated June 30, Guvamatanga said the move by HCC violated Statutory Instrument SI 142 of 2019 which prohibits the use of foreign currency for domestic transactions, except if provided for by the law or if exempted in terms of the Exchange Control Regulations.

“Under this, in March 2020, the government published SI 85 of 2020 which, in section 2(2) provides that any person with free funds may elect to pay for goods and services chargeable in Zimbabwe dollars, in foreign currency using his or her free funds at the ruling rate on the date of payment.

“The payment, in foreign currency by any person paying for goods and services should be at his/her option unless otherwise exempted and cannot be compelled to pay in foreign currency.

“The charging and billing in US dollars by the City of Harare or any local authority is unlawful and contravenes the above-cited laws. As the city council falls under your purview, may you ensure that the City of Harare withdraws its notice and all local authorities comply with relevant laws.

“Be guided accordingly,” Guvamatanga said in a letter directed to the office of the secretary of Local Government and Public Works.

Harare Municipality recently gave notice that it would be charging its services in foreign currency with effect from July 1, 2023, as part of measures to preserve value for money and hedge against inflation.

“The need to preserve value against rate losses has necessitated this move. City of Harare thanks its valued residents for the support in funding service delivery through payment of rates and other services,” the city council said.