adminIn a statement at the weekend, Zimbabwe Revenue Authority (Zimra) board chairman Mr Sternford Moyo said net collections for the first half of the year amounted to $1,495 billion, falling short of the $1,5 billion.
“Economic growth remained stagnant during the first half of 2012 and was further slowed down by a number of factors which negatively affected the revival of the productive sectors of the economy,” said Mr Moyo.
He said erratic power supplies, working capital constraints, obsolete machinery and liquidity challenges continued to bog down industrial productivity. Mr Moyo said various taxes continued to make up the greater chunk of Government revenues.
“Net collections for the first half of 2012 amounted to $1,495 billion against a target of $1,5 billion, resulting in a negative variance of 0,34 percent,” he said.
“A large proportion of the revenue was realised from Value Added Tax, individual tax and excise duty, which contributed $497,2 million, $299,7 million and $175,4 million respectively.”
Other taxes contributed $174,3 million. Mr Moyo said the second quarter realised more revenue inflows compared to the first quarter, with a total of $774,6 million compared to $720,4 million.
Economic commentator Mr Trust Chikohora said performance by Zimra showed economic growth was at a standstill.
“The failure to reach the targeted revenue by Zimra confirms why the Minister of Finance, in his mid-term fiscal policy review, revised downwards his budget. It shows that the country’s economic growth is now stagnant,” he said.
However, he said from a tax collectors’ point of view, the variance was marginal as the amount of revenue collected in the first half of the year was not far off the target.
BancABC group economist Mr James Wadi said there was no need to panic.
“The negative variance is marginal and we should not be alarmed as the amount of revenue raised is almost within their (Zimra) target. The variance does not even make any significance in terms of economic impact,” he said.
Another economic commentator, Ms Wendy Mpofu, echoed similar sentiments.
She said although Zimra had missed its revenue target during the first half, it was likely that significant revenue collections would be achieved towards the end of the second half. — Chronicle Reporter/Harare Bureau.
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