Zimra surpasses revenue collection target

HARARE - The Zimbabwe Revenue Authority (Zimra) surpassed its August revenue target of $267,6 million after collections for the month amounted to $307,9 million due to a surge in company tax, data from the agency shows.

In its report for the month under review, Zimra said gross collections for the period amounted to $338,2 million. Refunds stood at $30,3 million.

“Net collections for the month increased by a phenomenal 20,59 percent from the $256,01 million that was collected during the same period last year,” Zimra said.

All major revenue heads — except for individual tax, which missed the target by 1,08 percent — surpassed their respective set targets for the month.

“The sterling performance is mainly a result of automation initiatives, anti-corruption measures, skills realignment, improved staff supervision as well as risk-based audits that are being carried out by the authority.

“In addition, Zimra is continuously following up on tax debts and negotiating with taxpayers for payment plans, as well as closely monitoring adherence to the agreed payment terms,” the tax collecting agency said.

While individual tax grew by 23,47 percent from August 2016 collections of $51,17 million, August collections amounted to $63,1 million against a target of $63,8 million.

“However, the revenue head’s performance continues to be affected by retrenchments, salary cuts and inconsistent salary payments by some companies,” said Zimra.

Corporate income tax contributed $17,26 million against a target of $8,70 million translating to a positive variance of 98,44 percent.

“The positive performance of the revenue head can be attributed to enforcement projects that the authority is carrying out as well as improved profitability by some companies,” said Zimra.

Value Added Tax (Vat) on local sales recorded gross collections of $92,34 million, which was 65,49 percent above the targeted $55,8 million.

“Vat refunds for the month amounted to $30,20 million, resulting in net Vat on local sales collections of $62,14 million. This translates to 11,36 percent above the target. Net revenue collections increased by 34,07 percent from the $46,35 million that was collected during the same period last year,” the agency said.

The authority also pointed out that its modernisation initiatives such as the Fiscalisation Programme, as well as the increased use of electronic payments had contributed to the positive performance of Vat on local sales.

“The introduction of Value Added Withholding Tax at the beginning of the year has also enhanced remittances under the tax head,” said Zimra.

Vat on Imports collections stood at $37,6 million, which was 26,27 percent above the target of $29,8 million.

“There was a 25,81 percent increase in revenue collections this year as compared to the $29,91 million that was collected in August 2016,” the tax agency said.

Comments (1)

The targets are clearly inadequate when we are told that in 2017 the deficit will be $1,7 billion!

citizen - 20 September 2017

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