THE charging and billing of services by local authorities in United States dollars is unlawful, a senior Government official has said.
This comes as a response to a City of Harare announcement that they will soon bill rates and other services in foreign currency beginning July 1st.
However, the Government has ordered the City of Harare to withdraw the notice saying it contravenes SI 142 as incorporated in the Finance (NO.2) Act of 2019 which provides that the Zimbabwean dollar the sole legal tender for all settlements within the country.
Finance and Economic Development permanent secretary, George Guvamatanga advised his counterpart at the Local Government, Rural and Urban Development Ministry that no person should be compelled to pay for goods and services in foreign currency.
“The charging and billing in United States Dollars by the City of Harare or any local authority is unlawful.
“As city councils fall under your purview, may you ensure that the City of Harare withdraws its Notice and that all local authorities comply with the relevant laws,”
“Pursuant to this, in March 2020, 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,” reads the statement.
Guvamatanga said the billing of rates in foreign currency is not exempted by the Exchange Control.
“As you are aware, transactions which are excluded from the scope of domestic transactions are provided for in the Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) Regulations, 2019 published in Statutory Instrument 212 of 2019.
“Section 4 of SI 212 of 2019 lists transactions which are not within the scope of the definition of “domestic transactions” provided in subsection (1) of that Statutory Instrument and the billing of rates by local authorities is not listed therein,” he said.
