Depressed economy hits taxman

Zimra chairperson Mr Stanford Moyo said in a statement that they collected almost US$1,495 billion during the period against a target of US$1,5 billion.
“Economic growth remained stagnant during the first half of 2012 and was further slowed down by a number of factors which negatively affected the revival of the productive sectors of the economy,” said Mr Moyo.

He said erratic power supplies, working capital constraints, obsolete machinery and liquidity challenges continued to bog down industrial productivity. Mr Moyo said  various taxes continued to contribute the greater chunk of Government revenues.
“Net collections for the first half of 2012 amounted to US$1,495 billion against a target of US$1,5 billion, resulting in a negative variance of 0,34 percent,” he said.

“A large proportion of the revenue was realised from Value Added Tax, Individual Tax and Excise Duty, which contributed US$497,2 million, US$299,7 million and US$175,4 million respectively.”
Other taxes contributed US$174,3 million. Mr Moyo said the second quarter of the first half realised more revenue inflows as compared to the first quarter, with a total of US$774,6 million as compared to US$720,4 million.

“Inflation was contained within the projected levels within the period under review,” he said.
“The annual rate of inflation declined from over four percent in the early months of the year to 3,97 percent in June according to statistics released by the Zimbabwe Statistical agency.

“It is estimated that this rate will be managed within the five percent threshold by the end of the year in line with fiscal projections.”
In the same period last year, Zimra collected US$1,294 billion, surpassing its target of US$1,15 billion.
Mr Moyo said Zimra was working on improving the performance of border posts to enhance revenue collection.

“Inadequate and in some place, antiquated infrastructure continues to negatively affect economic revival, especially with regards to border post efficiency, whose improvement is a top priority for Zimra,” he said.