A state media report that the Harare City Council is lifting residential rates by 10,000 percent has sparked concern among citizens of the Zimbabwean capital, but officials said the tax rise only affects motor vehicles and street markets and other increases are being discussed.

The state-controlled Herald newspaper reported Thursday that residents could be paying as much as Z$560 billion a month compared with the Z$20 million they paid in December, which would be far more than the average worker wage of Z$30 billion a month (US$10).

The Combined Harare Residents Association said such an increase in residential rates would merely add to the hardships facing residents.

But Harare Deputy Mayor Emmanuel Chiroto told reporter Jonga Kandemiiri of VOA's Studio 7 for Zimbabwe that it is not true that the council has raised rates for residents and he took the state-controlled Herald newspaper to task over its report.

More reports from VOA's Studio 7 for Zimbabwe...