THE Zimbabwe Revenue Authority (Zimra) has surpassed its revenue target for the third quarter of the year after collecting $6,59 billion, which is 26,55 percent above its target of $6 billion.
In a latest revenue performance report, Zimra vice board chair, Mrs Josephine Matambo, said the third quarter ended 30 September 2019 was positive.
“Revenue performance for the 3rd quarter of 2019 exceeded the set target on both gross and net positions.
Gross collections for the 3rd quarter (Q3) of 2019 were $6,59 billion against the targeted $6 billion, thereby surpassing the third revised set target by 26,55 percent,” she said.
“After deducting refunds of $167,44 million for the quarter, net collections of $6,42 billion surpassed the target of $6 billion by 8,79 percent.”
Mrs Matambo said when compared to the same period in 2018, gross collections grew by 413,66 percent from $1,28 billion. On the other hand, net collections recorded a growth of 349,17 percent from $1,19 billion that was collected in the same period last year.
“The positive variance is attributed to both inflation and the authority’s voluntary compliance and enforcement strategies.
“Major contributors to revenue were Individual Tax, Company Tax, VAT on Imports, Excise Duty, Dividends, Fees, Interests and Remittances, Withholding Tax on Contracts and Tobacco Levy,” she said.
Mrs Matambo attributed the positive revenue collections from Individual Tax and Company Tax to the ongoing revenue enhancement initiatives that Zimra is undertaking. The authority’s intensified effort through debt follow-ups, audits and investigations is contributing to the good performance of these revenue heads.
“Gross VAT on local sales marginally surpassed target as a result of reduced demand for goods and services due to high prices prevailing on the market.
“Refunds had a negative impact on the performance of net VAT on local sales, hence its performance ended up below the set target,” she said.
“The floating of the exchange rate in February 2019 continues to bear fruit as VAT on imports and Customs Duty responded positively.”
At the same time, increased imports to cover for local shortages have boosted collections of VAT on imports and Customs Duty. The performance of Excise Duty can be attributed to policy changes (Statutory Instrument 161 of 2019) that was implemented from the beginning of August whereby there was a change in the calculation of the above-mentioned tax head.
During the period under review, Carbon Tax failed to meet the set target because of reduced fuel imports, said Zimra.
Petrol imports decreased by 18,24 percent from 130,49 million litres in the third quarter of 2018 to 106,66 million litres in the third quarter of 2019. Diesel imports marginally increased by 0,68 percent from 265,46 million in the same period in 2018 to 267,26 million in the third quarter of 2019.