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Business Reporter
THE Zimbabwe Revenue Authority (Zimra) has recorded $108,93 billion gross revenue collections for the second quarter ended 30 June 2021, which is 15,96 percent above the set target of $93,93 billion.

All revenue heads registered positive growth while refunds valued at $2,29 billion were paid during the quarter under review resulting in net revenue settling at $106,64 billion.

Vice board chair, Mrs Josephine Matambo, revealed this in quarterly revenue performance report issued yesterday.

She attributed the improved collections to enhanced revenue measures and the continued positive economic environment on the back of heightened implementation of the National Development Strategy (NDS-1), a five-year Government economic blue-print spanning 2021 to 2025.

“Net revenue collections for the first half of 2021 amounted to $195,18 billion after deducting refunds of $4,64 billion (8,16 percent above target),” she said.

“In comparison with the same period in 2020 where a total of $20,11 billion was collected, nominal net revenue collections grew by 430,19 percent. All revenue heads registered positive growth in nominal terms.”

After adjusting for inflation, Mrs Matambo said net revenue grew by 202,30 percent in the second quarter 2021 as compared to the same period in 2020.

“The revenue enhancement measures implemented by the authority during the quarter positively influenced revenue collections,” she said.

“On the other hand, although inflation is decreasing it is still high enough to exert a positive influence on nominal revenue performance.”
Zimbabwe’s inflation eased by 133,91 percentage points from 240,55 percent in March 2021 to 106,64 percent in June 2021.

During the period under review the exchange rate generally remained stable despite the local currency weakening slightly against the US-dollar.

“The stability in exchange rates and the decreasing inflation have instilled more confidence in business and the performance of the economy as a whole thereby boosting economic activity leading to a positive effect on tax revenue collections,” said Mrs Matambo.

Recently the World Bank projected a 3,9 percent growth for 2021 while the International Monetary Fund (IMF) projected a six percent growth.

Treasury projected a 7,5 percent growth at the beginning of the year. Zimbabwe’s growth this year is underpinned by a bumper harvest for the 2020/21 agricultural season, increased energy production and the resumption of increased manufacturing and construction activities.
However, the Covid-19 induced business interruptions remain a major threat to projected growth.