Zimra surpasses target

HARARE - Tax collector, Zimbabwe Revenue Authority (Zimra), on Friday said it surpassed its first quarter 2017 collection target on the back of improved collections.

Zimra said it had surpassed its first quarter target with gross collections coming in at $862,4 million, six percent above target.

“. . . The national revenue target for the first quarter of 2017 — which stood at $812,9 million — has been surpassed, courtesy of your tax compliance and support,” the tax collecting agency said.

Net collections for the first three months after refunds stood at $826,6 million two percent above target.

While Zimra did not outline the rest of the quarterly report stating that a “detailed report outlining the performance of respective revenue heads will be published in due course,” the tax institute highlighted that measures to enhance operational efficiency had started bearing fruits.

Earlier this week, Zimra announced that it had embarked on lifestyle audits as one of its initiatives to improve tax compliance levels and to assist taxpayers with information on tax matters.

The audits are being carried out to verify compliance of individual taxpayers in terms of the statutes administered by Zimra, which include Income Tax Act, Capital Gains Act, Value Added Tax Act and Customs and Excise Act.

This comes as Zimra — owed an estimated $2,5 billion in unpaid taxes — also surpassed gross and net revenue collection targets by four percent and three percent respectively, buoyed by a surge in Value Added Tax (Vat) on local sales in the first month of the year.

In January, Vat on local sales — which closed the month under review 41 percent above target — recorded total net collections of $76,9 million.

According to the tax agency, increased consumption of goods which attract Vat during the festive season, coupled with use of plastic money and an on-going fiscalisation project, saw gross Vat revenue rising by $13 million from the $66 million collected in January 2016.

Market watchers say the authority’s Vat on local sales collections are likely to surge in the coming months following broke treasury’s move to levy a 15 percent Vat on basic foodstuffs following import restrictions on locally available basics imposed last year.

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