Home » Business » Zimra Q1 Collections Above Target

The Zimbabwe Revenue Authority collected US$834,6 million against a target of US$817,9 million in the first quarter of the year, resulting in a positive variance of 2 percent.

This compares favourably with the $43,1 million that was collected during the same period last year. Zimbabwe Revenue Authority commissioner general Gershem Pasi said most of the revenue was realised from Value Added Tax (VAT), Individual Tax and Excise Duty.

Value-Added Tax brought in $211,6 million, accounting for 25 percent of total revenue, while individual tax at $193,2 million represented 23 percent of total revenue and Exercise duty came in at $109,7 million representing 13 percent of revenue.

Mining Royalties collections, which had been disappointing in the past amounted to US$79,1 million against a target of US$31,2 million resulting in a positive variance of 154 percent and a contribution of 9 percent of total revenue.

“The performance of the revenue head can be attributed to the removal of sanctions on Zimbabwe’s diamond mining companies which enabled the sale of diamonds at Antwerp,” Mr Pasi said.

Individual Tax collections amounted to $193,3 million against a target of $168 million, resulting in a positive variance of 15 percent.

During the same period last year, $172,7 million was realised which translates to a 12 percent growth in revenue.

The performance of the revenue head was attributed to follow-ups and audits that the Authority carried out specifically on remuneration, which resulted in more revenue being collected.

Corporate Income Tax raised $104,7 million against a target of US$88 million resulting in a positive variance of 19 percent.

This represents a 22 percent increase from the $85,6 million that was collected during the same period last year.

“The performance of the revenue head can be attributed to intensified efforts by ZIMRA to enforce compliance through follow-ups and audits,” Mr Pasi said.

He added that collections under this revenue head are expected to improve in the second quarter where a greater percentage of the forecast tax liability (i.e. 25 percent) will be remitted as the second installment under Quarterly Payment Dates (QPD).

Negative variances were however recorded in carbon tax and tobacco levy collections. Carbon Tax collections totalled $8,3 million against a target of $8,9 million resulting in a negative variance of 7 percent.

Tobacco Levy realized $1,9 million during the quarter against a target of $2,8 million resulting in a negative variance of 31 per cent.

The performance of the revenue head was attributed to lower current tobacco prices as compared to 2013 prices, although volumes were higher this year.

Mr Pasi said the Authority will continue to play its part in ensuring efficient and effective systems for domestic resource mobilisation, which is critical in the attainment of targets under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.

Source : The Herald

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