HomeNews‘Industry recovering’

‘Industry recovering’

-

The country’s local industry is on its way to recovery as indicated by the improved performance of the value added tax (VAT) on local sales.

Latest statistics from the Zimbabwe Revenue Authority (Zimra) show that gross VAT collections were 15% above target at $292,8 million.

In his first quarter update, Zimra board chairman Sternford Moyo said net collections totalled $260,5m against a target of $249,5m.

“VAT on local sales contributed 54% of total VAT revenue while the remainder was from VAT on imports,” Moyo said.

“The outstanding performance of this revenue head can be attributed to improved local industrial capacity utilisation, which enhanced performance of VAT on local sales.”

Total gross collections for the first three months of the year amounted to $773,7m against a target of $715,4m.

Moyo said Zimra had missed its revenue collection target in the customs duty head owing to the improved performance of local industry.

Under the revenue head, $88,5m was collected against a target of $90,9m resulting in a negative variance of 3%.

“The quarterly target was missed because the local industry has experienced significant improvements in terms of capacity utilisation,” he said.

“Therefore, the economy is no longer fully dependant on imports, which are the drivers of this revenue head.”

Individual tax, contributed 19% to total revenue with collections amounting to $145,5 million.

Excise duty collections amounted to $88,9m against a target of $70m boosted by tobacco levy.

Collections from other taxes including non-tax revenue, domestic dividends amounted to $82,8m against a target of $75,4m.

Recent Posts

Stories you will enjoy

Recommended reading