THE mining sector revenue collection for royalties surpassed its target by 45% to $112,6 million for the first half of the year due to collections boosted by the debt set-off done in March.
In a statement yesterday, Zimbabwe Revenue Authority (Zimra) commissioner-general Gershem Pasi said about $45 million was set-off against outstanding mining royalties from mining companies.
“Mining royalties revenue collections for the first half of 2014 amounted to $112,6 million against a target of
$77,7 million, resulting in a positive variance of 45%. Collections were boosted by the debt set-off done in March 2014,” Pasi said.
The mining sector in Zimbabwe has become one of the major drivers of the economy since 2009 after it overtook agriculture.
The sector, since 2009, has been booming due to favourable commodity prices.
According to the official figures, the mining sector was expected to grow by 11,4% this year on the back of planned investments and largely driven by strong performance in gold, diamonds, nickel and coal.
In the period under review net revenue collections for the first half of the year was below target by 1% to $1, 72 billion against a target of $1,74 billion mainly due to revenue realised from value added tax (VAT), individual tax and excise duty which contributed 26%, 25% and 14% respectively.
Pasi said revenue collections for capital gains tax and capital gains withholding tax surpassed its target by 33% to $15,7 million against a target of $11,8 million.
Individual tax recorded a positive variance of 24% to $429,5 million against a target of $346 million. Other indirect taxes recorded a positive variance of 20% to $69,4 million against a target of $57,8 million.
During the period under review, tax and domestic dividends and interest recorded 12% variance to $16,9 million against a target of $15,2 million, tobacco levy recorded a positive variance of 12% to $9,8 million against a target of $8,8 million and VAT on imports recorded a positive variance of 6% to $224,7 million against a target of $212 million.
“The revenue performance for the first half reflects the underlying economic environment currently obtaining. An improvement in the economic outlook as envisaged under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation blueprint would boost revenue performance,” Pasi said.