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Innocent Ruwende Senior Reporter
Harare City Council has extended to corporates, churches and leaseholders the 50 percent discount, which had previously been reserved for domestic clients.

The facility ends on November 30.

City corporate communications manager Mr Michael Chideme said commercial enterprises owe council $278 million.

“Non-payment of the debt is negatively affecting service delivery which has prompted the city to extend the 50 percent discount window period to the business sector which was previously not covered under the previous campaign,” he said.

“The discount period ends on 30 November, 2018.”

According to the recent minutes of the Finance and Development Committee, acting finance director Mr Stanley Ndemera told councillors that ratepayers collectively owe the city $795 million.

“The incremental quantum of debtors for the month of August increased marginally from $9 million in July 2018 against $10 million in August 2018,” he said. “Domestic consumer debtors incremental quantum rose by $6 million for the month of August against $7 million for July 2018 consisting 46,8 percent of total debtors, reads the minutes.

“Commercial debtors stood at 34,4 percent which was a fair stagnant position from the 34,6 of July 2018. Creditors were reported at $448,7 million from July 31, 2018 position of $446,8 culminating to a reduced increase of $1,88 million for the previous position of $3,3 million.”

Council heard that outstanding statutory obligation payment remained a burden regardless of concerted effort to reign creditors as interest charges on debt significantly diminish impact of monthly payments.

Mr Ndemera told councillors that a total of $3,41 million was owed to CABS while council owed FBC Bank $21,38 million.

The committee was also advised that revenue collection for the months of September and October this year had improved due to response by ratepayers’ to the 50 percent discount that had been offered on rates for residential properties.

“The committee was advised that the deadline for the 50 percent was October 24 but due to overwhelming response by ratepayers, the administration had found it in the best interest of council to extend the deadline to October 31 while some councillors were advocating for the extension of deadline to December 31,” read the minutes.

“After discussion, it was resolved that a report on the impact of the discount on revenue collection be submitted for consideration by the committee after a decision for extension would be made.”