admin
Business Reporter
THE Zimbabwe Revenue Authority has surpassed its revenue target for January, driven by Value Added Tax, which was 41 percent above the target.Net revenues increased by three percent $262,2 million against a target of $254,1 million and 13 percent up when compared with $232 million collected in January last year.
Net collections from Value Added Tax were $76,9 million, largely driven by increased consumption of goods during the festive season, coupled with use of plastic money and the ongoing fiscalisation project whose aim is to plug revenue leakages, Zimra said.
In January last year, Zimra collected $66 million from Value Added Tax.
Cash shortages being experienced in the country have seen a significant increase in card-based transactions as many people are now using their debit and credit cards to transact.
The VAT refunds bill plummeted to $2,6 million in January this year as compared to the $14,6 million paid out during the same period last year due to intensified audits and verifications.
Faced with tight fiscal space, Government has intensified measures to enhance revenue collections as well as reducing leakages in the form of tax evasion and smuggling.
This week, the Government introduced 15 percent VAT on all meat and cereal products.
Zimra said the improved performance came at a time when the authority has embarked on a massive exercise to curb illegal and underground activities such as tax evasion, smuggling, transfer pricing and corruption in order to enhance revenue collections.”
“The numerous strategies to grow revenue — which include extension of fiscalisation to all VAT registered operators, cargo tracking, automation, enhanced audit and investigation activities, information dissemination, and negotiation with taxpayers for payment terms, among others-are beginning to bear fruit as evidenced by January revenue collection figures,” said Zimra.
Last year, Zimra missed revenue target by $145 million.
Annual gross collections amounted to $3,56 billion, 96 percent of the targeted $3,607 billion. Net collections amounted to $3,248 billion or 91,05 percent of the target.
Annual collections from company tax declined by 20 percent compared with year 2015.
Online Reporter