THE Zimbabwe Revenue Authority says its net collections for the first half of 2019 surged 118,9 percent to ZW$2,31 billion, surpassing its target.
Zimra chairman, Calisto Jokonya, said this will allow government to consolidate its fiscal position and reduce domestic borrowing. Mr Jokonya said regardless of the challenging operating environment, tax payers continue to support the economy by meeting their tax obligations.
“Revenue performance for the first half of 2019 exceeded the set target on both gross and net positions. Gross collections for the first half of 2019 were ZW$5,27 billion against the targeted ZW$4,3 billion, thereby surpassing the set target by 22,75 percent.
“After deducting refunds of ZW$211,52 million for the first half, net collections of Z$5,06 billion surpassed target of ZW$4,3 billion by 17,83 percent,” Jokonya said in a statement accompanying the tax collector’s performance report for the first half of 2019.
The ZIMRA boss added that the monetary policy transition from multiple currency regime to the use of the Zimbabwe dollar as local currency introduced through Statutory Instrument 142 of 2019 gives hope for more revenue mobilization.
“Such a move will remove distortions associated with the multi-tier pricing system, thereby enhancing formal transactions that boost revenue flows. The move will also enable simple tax calculations and reporting which can enhance compliance,” he said.