Zimra surpasses target
THE Zimbabwe Revenue Authority (Zimra) surpassed the net revenue collection target for last year by 24,65 percent to $23,19 billion against a target of $18,6 billion as the authority accelerates the implementation of its five-year strategy covering 2019 to 2023.
In a statement for the fourth quarter ended December 31, 2019, Zimra vice board chairperson Mrs Josephine Matambo said the quarter under review also saw the authority surpassing revenue projection by 47,27 percent to $11,71 billion against a target of $7,95 billion.
“On a cumulative annual basis, the authority collected net revenue of $23,19 billion against a target of $18,60 billion for the year ending December 31, 2019.
“During the fourth quarter of 2019, the authority collected net revenue amounting to $11,71 billion against a net revenue target of $7,95 billion,” said Mrs Matambo.
She said Zimra continues to play a pivotal role in supporting the Government’s implementation of the Transitional Stabilisation Programme (TSP) and has made significant strides in making impact on restoration of fiscal balance, plugging of revenue leakages and ease of doing business. The net revenue collected for the quarter under review grew by 651,29 percent in nominal terms compared to the same period in 2018.
“In real terms net revenue collections during 4th quarter of 2019 grew by 11,44 percent compared to the same period the previous year. Generally, all revenue heads recorded growth in nominal terms which is a reflection of both inflationary pressures and the authority’s revenue collection and enforcement strategies,” she said.
Major contributors to revenue were Excise Duties (15,63 percent), Individuals (15,16 percent), Companies (14,25 percent) and Net VAT on Local Sales (12,86 percent).”
Mrs Matambo said the general inflation pressures caused the prices of goods and services to increase resulting in higher sales values. “Individuals’ positive performance was a result of cushioning allowances and cost of living adjustments that employers awarded to employees this quarter as well as revenue enhancement initiatives that the Authority embarked on.
“Companies recorded a positive performance during the quarter, which can be attributed to higher nominal profits by some companies. Increased use of mobile and electronic modes of payment which have an audit trail also enhanced compliance in revenue declarations.
“VAT on Local Sales also performed positively despite huge refunds of $330,41 million that were paid out during the quarter,” she said.
The net revenue to the Gross Domestic Product ratio stood at 18 percent against a regional average ratio of 15 percent and Mrs Matambo indicated that Zimra will continue implementing voluntary and enforcement compliance strategies to increase this ratio.
She said the tax collector will also intensifying efforts to plug revenue leakages through closing of smuggling loopholes, fighting and prevention of corruption by the tax collector’s staff members and the clients.
The authority’s vice chairperson said their strategic partnerships with the Zimbabwe Anti-Corruption Commission was yielding positive results in terms of prevention and detection of corruption. And on the ease of doing business, she said Zimra was seeking to contribute to the improvement of the country’s “Ease of Doing Business Index” by facilitating smooth movement of goods and people at the national ports of entry and exit as well as implementing the simplified tax and customs processes.
“In order to improve ease of doing business on domestic taxes transactions, the authority has started the process of acquiring a modern Tax Administration System (TaRMS).
“On the customs side, mandatory preclearance commercial cargo at ports of entry was implemented.
“A number of applications for the Authorised Economic Operator Programme are under consideration and to date, nine companies are registered under the programme.”
The authority was also highly involved in the One Stop Investment Centre (OSIC) and it also contributes significantly into the Zimbabwe Special Economic Zone Authority and Border Efficiency Management Systems (BEMS) activities.
“The objective is to increase tax and customs convenience to the transacting public,” said Mrs Matambo. — @okazunga. of