Zimbabwe Revenue Authority misses quarterly target

THE Zimbabwe Revenue Authority (Zimra) has missed its quarterly revenue collection target quarter weighed down by subdued mining royalties and declining industrial output, the authority has said.

Report by Business Reporter

In its revenue performance report for the of the third quarter ending September, the authority reported that collections amounted to $897,3 million against a target of $904,9 million, resulting in a negative variance of 1%.

While total income has marginally missed the target, recurrent expenditure has continued to gobble the trickling revenues, further limiting fiscal space.

Value-added tax contributed 32% of the total revenue collected, followed by individual tax (24%), while excise duty was third with a contribution of 15%.

Turning to mining royalties, the tax collector reported that third quarter collections stood at $39 million against a target of $63,7 million due to fluctuations in international prices of minerals.

The report further stated that royalties from diamonds were negatively affected by the placing of some diamond mining companies under sanctions.

Zimra, however, expressed optimism that the lifting of sanctions imposed by the European Union on State-owned mining arm Zimbabwe Mining Development Corporation would boost mining royalties.

The issue of royalties, generally seen has too high compared with regional peers, has been widely debated in the industry forcing government to consider revising them should mining companies beneficiate the minerals.

According to the World Bank, the mining sector has to date been the most dynamic sector of the economy, leading the 2009-2011 rebound with average annualised growth of 35,5% and contributing 3,7 percentage points to overall gross domestic product growth of 8,4% during the period under review.

Company tax according to the report accounted for $102,4 million of the total revenue collected against a target of $105,2 million.

“As indicated in the Confederation of Zimbabwe Industries Manufacturing Survey report, industrial capacity utilisation dropped from 44,6% in 2012 to 39,6% in 2013. This has negatively impacted on the performance of many comoanies, and consequently on the performance of the revenue head,” said Zimra board chairperson Sternford Moyo.

11 Comments

  1. Zanu needs to revise its policies to stimulate industrial growth

  2. The argument that royalties from diamonds were negatively affected by the placing of some diamond mining companies under sanctions does not hold water because in the past Zimra was always meeting its revenue targets. Are they saying during that time the same companies were not under sanctions? It seems everyone is now blaming sanctions for his or her own failure.

    1. @ nesongano I agree with you 100%. Infact those targets had already taken into account the impact of sanction and so I do not see how missing the targets has anything to do with sanctions. We are seek and tired of people who are always blaming sanctions for their incompetence.

  3. Its attitude shift more than anything else needed in the ZANU PF government.

    Zimbabwe has to wait for our 90 year old President, to get out of bed, on a day his old bones will allow, to present himself before the nation, we hold our breath, for we all know what came out of his mouth 20 years ago, Anti West, Britain this and that rhetoric, will come out again.

    Zimbabwe’s future lies in its ability to spark a health debate on leadership renewal. Because right now we won’t know if we are going or coming. Optimism, Hope went with the Unity government, Zvinhu zvakamira.

  4. ZIMRA should come up with policies and procedure that are friendly and encourage SME’s to make their tax contributions. Right now it’s such a pain for most SME’s to deal with ZIMRA, its as if they want to punish you for showing up at their offices. Consequently most SME’s as much as they would like to comply with ZIMRA are frustrated by them.

  5. Small Business Operator

    I totally agree with Peacemaker. We run a small business and it is very hard to work postively with ZIMRA.

  6. Dealing with Zimra, pressure ano riser. Ma workers ku zimra ari arrogant. Munhu Manager Excise murume Cochrane is the most helpful person there, he can listen to you and give advice, but most Zimra staff are just not helpful enough, its like they are doing you a favour forgetting that they are there to serve,.

  7. Eh zanupf makes all this noise about hee we are rich heee diamonds yet they contribute less than 70 mill a quarter. We need foreign investment ..we really cant afford to turn this country around alone FACT!

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  9. If Ziscosteel was operating properly (no matter who owns it) it would contribute $100million in company tax, another $100 million in PAYE another $100 to Zesa, another $50 as company tax from its suppliers, and another $30 million also from its suppliers employees PAYE. Another $50million as company tax and PAYE from consumer product suppliers, ma tissue, flour, Chingwa, ma TV, motokari, fuel, magetsi, nyama (CSC), colcom, beer etc. If Zisco alone was operational (no matter who owns it) it would contribute as much as $300million directly and indirectly to the treasury. So would Bata, Zim Alloys, Zimcast, CSC, NRZ, david whitehead, cone textiles and many others. That heading could easily have been “ZIMRA misses its $4Billion quartely target”

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