Zimra surpasses April target

HARARE - National tax collector, the Zimbabwe Revenue Authority (Zimra), yesterday said it surpassed its April target by 6,14 percent due to significant improvement in revenue collections. 

“Gross collections for the month amounted to $361,88 million, which translates to 9,18 percent above the targeted $331,47 million.

After deducting refunds of $10,06 million, net collections stood at $351,83 million, giving a positive variance of 6,14 percent against the target of $331,47 million,” Zimra said.

Net revenue collections in April 2018 improved by 41,92 percent from the $247,90 million that was collected during the same period in 2017.

“There was a general improvement in the performance of revenue heads with Companies, value added tax (Vat) on Imports, customs duty and other taxes recording a positive performance and surpassing set targets,” the national tax collector added.

In the period under review, companies’ revenue head was the highest performer with collections rising to $46,89 million against a target of $13,70 million.

Zimra noted that improved profitability by some companies coupled with compliance checks triggered the revenue head to the massive growth. Spill overs from the first QPD as well as payments from companies with special arrangement QPS also enhanced revenue collections during the month, hence the sharp spike in growth.

“On the flipside, Individuals, Vat on local sales and excise duty performed below expectations although all revenue heads performed much better as compared to the same period in 2017. This improvement is attributed to the Authority’s revenue enhancement initiatives as well as the improved operating business environment,” Zimra said.

$33,83 million was collected for gross customs duty, inclusive of refunds of $110,228 against a target of $29,36 million, resulting in a positive variance of 14,84 percent. When compared to the same period in 2017 where Zimra collected $21,42 million, there is marked growth of 57,38 percent.

Revenue collections of $65 million from excise duty were 5,95 percent below the targeted $69,11 million.

“However, a 21,11 percent increase in revenue collections was recorded from the $53,67 million that was collected during the same period last year. Major contributors to the revenue head were fuel (68,79 percent), beer (14,98 percent) and airtime (10,46 percent).

“The performance of the revenue head can be attributed to low disposable incomes for the consumption of excisable goods as well as lower than anticipated fuel imports,” added Zimra.

The revenue collector indicated that the target for April 2018 was surpassed despite challenges in the operating environment.

— The Financial Gazette

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