Revenue collections surpass target

ahead of a target of US$1,15 billion.

This was largely driven by revenue performance for the second quarter of the year, which saw total gross collections amounting to US$675,9 million against a set target of US$595,6 million.
Zimra board chairman Mr Sternford Moyo noted that Value Added Tax was the main contributor to total collections during the half-year.
“Most of the revenue was realised from VAT, individual tax, and customs duty which contributed US$507,1 million, US$268,9 million and US$163,1 million, respectively,” he said.

All the revenue heads, save one (other taxes) performed ahead of set targets during the period under review.
VAT collections for the period amounted to US$507,1 million against a target of US$470,4 million, resulting in a positive variance of eight percent. According to Zimra the performance of this revenue head improved by 45 percent from US$350,7 million collected during the same period last year.

With respect to income tax (individuals), collections were US$268,9 million against a target of US$217,1 million, resulting in a 24 percent positive variance. Income tax collection improved by 57 percent compared to the 2010 first half collections of US$171,3 million.

Corporate tax contributed US$136,6 million against a target of US$90,2 million, leading to a positive variance of 51 percent.
This was a 36 percent increase from figures recorded for the revenue collected in the same period last year.

A total of US$163,1 million was collected as customs duty against a set target of US$149,1 million – a positive variance of 9 percent. These collections rose by 14 percent from the prior comparable period last year, which stood at US$143,1 million.

Excise duty collections amounted to US$141,3 million against a target of US$115,5 million, resulting in a positive variance of 22 percent. Zimra reported that excise on fuel was the main contributor (63 percent of total excise duty revenue), while beer weighed in with 26 percent. Collections from this revenue head rose by 76 percent from last year’s collections in the comparable period, which stood at US$80,2 million.

Other taxes (comprising domestic dividends and interest, other income tax, tobacco levy, other indirect taxes, non-tax revenue and carbon tax) amounted to US$77,8 million against a target of US$108,1 million resulting in a 28 percent negative variance.

Zimra reported that other indirect taxes contributed the bulk of the revenue, having been boosted by royalties on minerals.
The Government is currently working on tax reform initiatives including the introduction of a Fiscalised Electronic System meant to enhance compliance and minimise leakages.