Zimra surpasses third quarter target
THE Zimbabwe Revenue Authority (Zimra) surpassed its RTGS$6 billion revenue target for the third quarter of 2019 as gross collections came in 25,55 percent higher at RTGS$6,59 billion, the tax collecting authority has said.
Zimra Vice Board Chairperson, Josephine Matambo, said despite deteriorating macroeconomic conditions, net collections amounted to RTGS$6,42 billion, surpassing the target of RTGS$6 billion by 8,79 percent.
“Compared to the same period in 2018, Gross Collections grew by 413,66 percent from $1,28 billion collected during the Third Quarter of 2018. On the other hand, net collections recorded a growth of 349,17 percent from $1.19 billion that was collected in the same period in 2018,” Matambo said.
She attributed the positive variance to both inflation and the authority’s voluntary compliance and enforcement strategies. Major contributors to revenue were Individual Tax, Company Tax, Value Added Tax (VAT) on Imports, Excise Duty, Dividends, Fees, Interests and Remittances (DFIR), Withholding Tax on Contracts and Tobacco Levy.
Individual Tax, Company Tax, VAT on Imports, Customs Duty, Excise Duty, DFIR, Withholding Tax on Contracts and Tobacco Levy surpassed set targets for the period under review.
On the other hand, Net VAT on Local Sales, Carbon Tax, Mining Royalties, Intermediated Money Transfer Tax, Capital Gains Tax and Other Indirect Taxes failed to meet their targets.
“Positive revenue collections from Individual Tax and Company Tax are attributed to the ongoing revenue enhancement initiatives that the Authority is undertaking. The Authority’s intensified effort through debt follow-ups, audits and investigations is contributing to the good performance of these revenue heads.
“Gross VAT on Local Sales marginally surpassed target as a result of reduced demand for goods and services due to high prices prevailing on the market. Refunds had a negative impact on the performance of Net VAT on Local Sales, hence its performance ended up below the set target,” the Zimra boss said.
She also pointed out that the floating of the exchange rate in February 2019 continued to bear fruit as VAT on Imports and Customs Duty responded positively.
“At the same time, increased imports to cover for local shortages have boosted collections of both VAT on Imports and Customs Duty,” Matambo said.
Carbon Tax failed to meet the set target because of reduced fuel imports.