THE Zimbabwe Revenue Authority (Zimra) says the bulk of its revenue tax heads exceeded targets in the first quarter, resulting in total gross collections of $862,47 million against a target of $812,9 million.
BY TARISAI MANDIZHA
The revenue collector said the improved performance was attributable to the thrust in automation, audits and compliance checks.
In a statement yesterday, Zimra board chairperson, Willia Bonyongwe said during the first quarter other tax heads such as value-added tax (VAT) on imports, company tax, mining royalties and other indirect taxes exceeded their first quarter targets in addition to VAT on local sales.
“It is encouraging to note that quite a number of tax heads exceeded their targets unlike before when only VAT on local sales would meet the target. The improved performance of VAT on local sales and company tax is attributable to the thrust in automation, audits and compliance checks. Automation has enabled Zimra to bring in more taxpayers into the net,” she said.
“It has also enabled Zimra to notice under-declarations. This process is on-going and the trend is, therefore, expected to continue throughout the year, other things remaining equal.”
Corporate income tax or company tax recorded a growth of 25,19% to $92,64 million against a target of $74 million, VAT on imports total collections amounted to $85,55 million, which exceeded the set target of $84,1 million, mining royalties revenue collections amounted to $16,39 million, exceeding the set target of $13,5 million among other taxes.
In the period under review, VAT on local sales contributed 22,42%, individual tax 20,05% and excise duty 18,17%. Company tax contributed 11,20%, while the rest of the revenue heads contributed 28,16%.
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During the period under review, refunds amounted to $35,84 million giving $826,63 million in net collections. Net revenue was up 14,04% from $724,89 million recorded in the first quarter of 2016.
