SI 64 boosts Zimra cof­fers

Chronicle (Zimbabwe) - - Business - Harare Bureau

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.

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