Zimbabwe’s Treasury has directed a number of Government ministries. Departments and agencies to revert to charging their fees and levies in the de factor local currency – the RTGS dollar.
This comes as most Government entities had moved to charges in the United States (US) dollar, albeit without approval.
Treasury says it had noted that several Government entities were now demanding payment for goods or services rendered in foreign currency or the equivalent in RTGS dollars at the prevailing interbank market rate.
Earlier, at the end of February, Reserve Bank of Zimbabwe (RBZ) governor Dr John Mangudya announced the introduction of an inter-bank foreign exchange market in the country that saw the formalization of trading of the country’s fiat currency, the RTGS balances and bond notes with US dollars and other currencies.
This has seen a number of private firms moving to charge in US dollars to hedge against the fast weakening RTGS dollar.
And a number of Government entities had begun to follow suit.
Treasury has however moved in to curb the behavior.
“Notwithstanding the current trends where service providers are unilaterally reviewing prices of goods and services, Government remains committed to the provision of services at cost recovery levels, cognizant of the need to ensure affordability and accessibility to the general public,” said the Ministry of Finance in a press release.
“It is important to note that Treasury has not approved any changes to the prevailing levels of fees and payment modalities. Thus Government fees, charges and levies remain at the approved RTGS dollars that were formally communicated to each Ministry, Department of Agency.”
The Ministry of Finance and Economic Development has maintained that the Constitution of Zimbabwe, through the Public Finance Management Act allows Treasury to direct ministries on any scale of fees and other charges.
Section 78(1)(r) of the public finance management act (Chapter 22:19) empowers Treasury to prescribing or issue instructions or directions to ministries, whether individually or collectively, concerning the determination of any scale of fees other charges or rates relating to revenue accruing to the consolidation revenue fund.
Treasury also said Line Ministries have since been directed to cease from referencing any fees and charges to the US dollar, as well as unliterary and illegally reviewing such fees without approval.