ZITAP Info – The Zimbabwe Taxpayers’ Platform (ZITAP) joined residents’ groups, the Combined Harare Residents Association (CHRA) and the Community Water Alliance (CWA) in calling for less levies, efficiency, and transparency at the local government level.
During an X Spaces discussion titled “Water levies and taxation: Economy and service delivery implications” organised by the groups and hosted by Open Parly’s Open Council platform, ZITAP, CHRA and CWA on Monday, April 14, 2025, raised issues with the US 144 million China Exim Bank loan.
This followed the Harare City Council’s introduction of a water infrastructure levy to repay the loan in the 2025 council budget statement without public consultation.
ZITAP Director, Vivid Gwede, told the meeting that the water levies added to the tax burden for the impoverished residents of Harare without benefiting them since water reticulation and quality had not improved.
“We should realise that loans are deferred taxes. These levies are also coming in the context of other taxes that citizens are paying. The cumulative effect is to reduce disposable income,” he added.
CHRA Director Reuben Akili said, “The water levy was sneaked in without broader consultation. The water levy is intended to service the Chinese loan which again we are not satisfied about performance in terms of how much water it has brought to residents.”
Community Water Alliance Director, Hardlife Mudzingwa said, “If you go to Section 300 (3) of the Constitution of Zimbabwe it says after the government has concluded any loan agreement or guarantee, the Minister responsible for finance must cause its terms to be published in a government gazette. That has not happened with the China loan.
“What we have seen is a unilateral decision where the Mayor of Harare together with the City of Harare have said they want to levy a dollar on every resident to cater for the repayment of a loan whose deliverables are not there.”
The organisations called for an audit of the loan.
The loan was contracted in secrecy with allegations of overpricing of components and an investigation by the City of Harare’s Special Committee in 2014 revealed that the loan had been abused, including lack of a project bank account, and buying of 21 luxury vehicles.
The advocacy and public awareness on taxation and Harare water levies followed a press statement on 24 March and a Capitalk FM radio program on 25 March by ZITAP and CHRA.