SI 64 boosts Zimra coffers
THE Zimbabwe Revenue Authority’s internal revenue collection for the three months to September 2016 increased to $222 million compared to $194 million in the second quarter driven by the introduction of Statutory Instrument 64 of 2016.
The Statutory Instrument introduced in July this year removed 42 products from the general import licence. This policy directive has managed to breathe life into some manufacturing firms who have since increased capacity utilisation while some foreign firms have already started setting up their manufacturing plants in Zimbabwe.
Zimra regional manager Innocent Chikuni told the Buy Zimbabwe Retailers and Suppliers Conference yesterday that this policy intervention has had a positive impact on the operations of the tax authority.
Mr Chikuni said the introduction of SI 64 had seen an increase in import value added tax at $89 million for the three months from $86,3 million recorded in the second quarter.
There was, however, a decrease in revenue collected from customs duty during the three months recording $64,1 million from $67,6 million of the second quarter.
“There was a general thinking that the introduction of SI 64 was going to have a negative impact on our revenue collection but I can tell you that the contribution of value added tax has been convincing. Most companies have recorded an increase in sales hence the increase in our local revenue collection,” said Mr Chikuni.
The Confederation of Zimbabwe Industries recently said local manufacturing companies have recorded a 30 percent increase in orders since the introduction of the regulations.