ZIMRA SURPASSES REVENUE TARGETS:
THE Zimbabwe Revenue Authority (Zimra) has surpassed gross and net revenue targets for last month by 17 percent and 11 percent respectively due to a raft of measures it has been implementing.
Gross revenue collections for the month amounted to $307,35 million against a target of $262,21 million and net collections after refunds were at $290,68 million.
Zimra said it had intensified audits and enforcement activities, improved operational efficiency, and client engagement initiatives to enhance revenue collections.
Individual Tax, which grossed $60,62 million against a target of $63,31 million, was the main contributor to total revenue for the month.
Its performance according to Zimra was affected by salary cuts and irregular salary payments. The $60,62 million was, however, 7 percent up from $56,54 million that was collected during the same period last year.
The biggest jump was in Corporate Income Tax collections which rose 254 percent to $35,08 million against a target of $9,90 million.
Gross collections from Value Added Tax (VAT) on Local Sales were up 14 percent to $63,12 million against the target of $55,60 million while VAT refunds for the month were $16,54 million, resulting in net collections of $46,59 million, which are 16 percent below the target. Collections from VAT on Imports were $37,39 million, which is 31 percent above the targeted $28,50 million.
Revenue collections under this revenue head were 32 percent above the $28,26 million collected during the same time last year.
The positive performance of the revenue head was attributed to an increase in foreign currency allocations to banks by the Reserve Bank of Zimbabwe to meet critical foreign payments.
Gross collections for Customs Duty at $24,98 million were 6 percent above the target of $23,59 million while net collections came in at $24,88 million against the target of $23,59 million.
Customs Duty refunds for the month were $94 778,04. A total of $57,34 million was collected under Excise Duty against a target of $56,24 million while net collections were 12 percent above the $51,22 million that was collected in May 2016 largely due to an increase in volumes of imported fuel and the introduction of Excise Duty on paraffin.
The revenue authority has so far collected $1,43 billion and $1,36 billion in gross and net collections respectively this year against a target of $1,34 billion. It also exceeded its first quarter target of $812,94 million after gross collections came in at $862,47 million and net collections at $826,63 million.
Zimra acting commissioner general, Mr Happias Kuzvinzwa paid tribute to members of the public for positively responding to the clarion call to comply with fiscal laws through paying taxes and duties on time and in full.
“Paying taxes and customs duties on time and in full is a sign of patriotism and contributes to the economic development of our beautiful nation. I, therefore, urge our compliant clients to continue paying their taxes to build and dignify Zimbabwe. I wish to encourage people who are not paying their taxes to start playing their part in building the country,” said Mr Kuzvinzwa.