Sundaymail Editor
THE Zimbabwe Revenue Authority (Zimra) missed its third quarter revenue target by 9 percent as it only managed to rake in US$885 million from US$972,3 million that was forecasted, weighed down by reduced economic activity.
According to a revenue performance report from the taxman, Value Added Tax (Vat) contributed the bulk of the collections at 28 percent, followed by Individual Tax and Excise Duty at 26 percent and 14 percent correspondingly.
However, individual tax collections managed to buck the downtrend – as most of the tax heads underperformed – by registering a 19 percent growth in the third quarter on on-going follow ups, audits and revenue enhancing projects.
About US$226 million was collected against a target of US$190 million.
Revenues generated from companies continue declining as the liquidity challenges continue to bite. Collections, therefore, tumbled 10 percent to US$92 million from a year ago and missed the projected target by 10 percent.
The mining sector also continued underperforming, with contributions from mining royalties falling 31 percent short of the target at US$33 million.
Commodity prices continue declining as the global economic growth slows.
Also, there hasn’t been any major diamond sales during the quarter.
Vat on local sales and imports, including excise duty, tanked as the economy remains severely constrained.
MAJOR HIGHLIGHTS
ZIMRA Annual Collections Versus Target
SALIENT FEATURES
– Petrol and diesel imports fall in Q3 to 111 million litres and 226 million litres from 125 million litres and 239 million litres, respectively
– Fuel and beer contributed about 75 percent and 15 percent in that order to Excise Duty
– Revenue forgone through the suspension of Customs Duty for Q3 was US$175 million, way above customs duty collections of US$88,2 million.
– Zinara started collecting Road Access Fees in the last part of the third quarter of 2014
Online Reporter