Zimra marginally misses target

HARARE - National tax collector, the Zimbabwe Revenue Authority (Zimra), collected $1,72 billion in taxes in the half year to June 2014, against a target of $1,74 billion, resulting in a negative variance of one percent.

“An improvement in the economic outlook as envisaged under the economic blueprint ZimAsset would boost revenue performance,” Zimra commissioner-general Gershom Pasi said in a revenue performance report for the first half of 2014 released yesterday.

Pasi noted that Value Added Tax (Vat) collections contributed $456,6 million against a target of $558,1 which constitutes 26 percent of total revenue collected.

The performance translates to a negative variance of 18 percent.

“A total of $231,9 million was collected against a target of $346,00 million after deducting refunds of $85,6 million resulting in a negative variance of 33 percent,” he said, adding that net Vat on local sales contributed 51 percent to total Vat revenue and 13 percent to total revenue.

The Zimra boss noted that under-performance of the Vat revenue head was attributed to the fall in industrial capacity utilisation which has resulted in reduced production of goods that attract Vat and a decline in disposable incomes as some companies are retrenching, closing or failing to award meaningful remuneration increments to their employees.

“The performance of the revenue head is expected to remain depressed until industrial capacity utilisation improves,” he said.

President Robert Mugabe on Sunday claimed the economy was on a recovery path, despite his government struggling to foot the civil service wage bill.

“Let me assure our people that the country’s economy is on a recovery path,” Mugabe said. “Government is going to employ several measures aimed at achieving desired results.”

He further said among his key strategies was the implementation of the ZimAsset — which has failed to attract $27 billion needed for its full implementation.

Comments (1)

zhinji yenyu munonyanyoisa muhomwe dzenyu mhani

Chidondova - 22 July 2014

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.