adminOliver Kazunga Senior Business Reporter
DEPRESSED international mineral prices and lower sales have resulted in a 39 percent drop in mineral royalties to $39,8 million in the first half of the year, Zimra said yesterday.
In a revenue performance report for the first half, Zimra board chairperson, Willia Bonyongwe, said the tax collector had targeted to raise $64,9 million from mineral royalties but only managed $39 million.
“Mining royalties contributed $39,8 million against a target of $64,9 million, which translates to a negative variance of 39 percent. There has been a 65 percent decline in revenue collection as compared to the same period last year where $112,6 million was collected,” said Bonyongwe.
“The performance of the revenue head can be attributed to depressed international mineral prices and lower sales.”
She said the first half of the year has been characterised by a myriad of challenges, which affected economic performance.
The challenges included liquidity constraints, limited lines of credit from financial institutions, power shortages, retrenchments and company closures.
Bonyongwe said the shrinking of the formal economy has led to the growth of the informal sector whose contribution to revenue was not significant.
Revenue collections under the individual tax head amounted to $379,5 million against a target of $390 million resulting in a negative variance of three percent..
During the same period last year, $429,5 million was collected.
“Retrenchments and company closures negatively impacted on the performance of the revenue head.”
She said collections under corporate income tax amounted to $167,5 million against the targeted $185 million resulting in a negative variance of nine percent.
On Value Added Tax on local sales , she said, gross collections were $366,5 million against a target of $316,3 million which translates to a positive variance of 16 percent.
Collection from VAT on imports amounted to $215,2 million against a target of $195,7 million.
Customs duty collections during the period under review amounted to $160,4 million against a target of $183 million resulting in a negative variance of 12 percent.
During the same period last year, $137 million was collected.
Performance of the customs duty head in the first half was attributable to liquidity challenges which negatively affected the importation of duty-paying goods.
A total of $346,2 million was collected under excise duty against the projected $285 million resulting in a positive variance of 21 percent.
Carbon tax contributed $17,4 million during the first half of the year against the targeted $15,1 million.
Online Reporter