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Africa Moyo
The Zimbabwe Revenue Authority (Zimra) recorded a 24,71 percent jump in revenue collections last year to $5,36 billion, mainly driven by stellar performances of almost all tax heads.
This is captured in the 2018 revenue performance report released yesterday.
Government had set Zimra a target of $4,3 billion.
Said Zimra in the report: “. . . revenue collections in 2018 surpassed target with the Authority collecting a gross of $5,36 billion or 21,80 percent of GDP, which is 24,71 percent above the target of $4,30 billion.
“Net collections amounted to $5,061 402, which is 20,57 percent of GDP.
“This positive performance is attributed, in part to the revision of the Intermediated Money Transfer Tax, price effect and improved efficiency and effectiveness of the Zimra team, as well as enhanced compliance level of taxpayers.”
Last year’s performance was also given a fillip by the “remarkable achievements” made which included the upgrading and commissioning of the Asycuda system which now has three new functional servers.
The Authority also stabilised the e-services platform that had developed challenges emanating from its premature launch, while the tax amnesty and subsequent voluntary disclosure assisted tax defaulters to regularise their operations.
Further, the Ministry of Finance and Economic Development provided funds towards infrastructure development at Beitbridge Border Post, with the aim of facilitating trade and travel.
Critically, Zimra improved the electronic cargo tracking system to curb transit fraud and more seals were purchased to expand sealing for other import offences.
Companies shelled out tax revenue of just over $809 million against a target of $490 million.
In comparison to 2017, last year’s contribution by companies represents a 10,75 percent growth.
Individuals contributed $860,4 million against a target $850 million, representing a 1,22 percent variance.
In the prior year, individuals had coughed $490 million, which means the head grew by 75,6 percent in the last two years.
Net value added tax (VAT) on local sales were $856,20 million, missing the target by 10,72 percent due to the refund bill which grew 31,29 percent to $297,14 million.
However, despite failure to meet the target, net VAT collections grew by 24,61 percent from $687,08 million collected in the year earlier.
Zimra says the gross performance of the VAT on local sales head was enhanced by the “hyped consumer patterns and surge in prices
experienced during the fourth quarter” of last year.
VAT on imports hit $523,98 million against a target of $401 million, resulting in a positive variance of 30,67 percent.
“The positive performance of the revenue head is attributed to high demand for imports following relaxation of import controls by the Government in order to supplement deficiencies in supply of locally produced goods,” reads the report.
Customs duty raked about $436 million against a target of $358 million, while excise duty generated $908,88 million against a target of $815,31 million, largely driven by supply of petroleum products.
Cumulative collections from the Intermediate Money Transfer Tax head amounted to $177,27 million, of which 411,12 million was collected in the first nine months at the rate of $0,05 per transaction.
After the revision of the IMTT, $166,15 million was collected from October to December last year.
This year, Zimra is targeting to collect about $6,2 billion.
Bongani Ndlovu