HomeBusinessZimra collections up 15% in August

Zimra collections up 15% in August

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THE Zimbabwe Revenue Authority (Zimra) says net collections for August were $307,95 million against a target of $267,66m, exceeding the target by 15%.

BY FIDELITY MHLANGA

Net collections for the month were 20,59% higher year-on-year from the $256,01m that was collected during the same period last year.

During the month, gross collections amounted to $338,29m, while refunds were at $30,35m.

“The sterling performance is mainly a result of automation initiatives, anti-corruption measures, skills realignment, improved staff supervision, as well as risk-based audits that are being carried out by the Authority,” Zimra said in a statement.

The tax collector said it was continuously following up on tax debts and negotiating with taxpayers for payment plans, as well as closely monitoring adherence to the agreed payment terms.

Company tax contributed $17,26m against a target of $8,70m. This translates to a positive variance of 98,44%.

“The positive performance of the revenue head can be attributed to enforcement projects that the authority is carrying out as well as improved profitability by some companies,” the tax collector added.

Last week, Zimra chairperson, Willia Bonyongwe said they were collecting 30% of prospective tax revenue, adding they would increase tax evasion penalties to punish tax evaders.

Collections under individual tax amounted to $63,18m in August against a target of $63,87m.

During the same period last year, collections under individual tax were $51,17m, which translates to a 23,47% leap in collections this year.

“However, the revenue head’s performance continues to be affected by retrenchments, salary cuts and inconsistent salary payments by some companies,” Zimra said.

Value-added tax (Vat) on local sales recorded gross collections of $92,34m, which is 65,49% above the targeted $55,80m.

Vat refunds for the month amounted to $30,20m, resulting in net VAT on local sales collections of $62,14m.

Net revenue collections increased by 34,07% from the $46,35m that was collected during the same period last year.

The taxman said the increase in importations that attract Vat as companies retool and recapitalise, as well as the importation of taxable consumer goods buoyed the performance of Vat on imports, whose collections were $37,63m.

Collections under this revenue head were 26,27% above the target of $29,8m.

There was a 25,81% increase in revenue collections this year compared to the $29,91m that was collected in August 2016.

A total of $61,94m was realised from excise duty, which is 10,87% above the target of $55,87m.

Collections increased by 5,48% from the $58,73m for August 2016. Significant contributions came from the supply of fuel (77,77%), beer (10,51%) and airtime (8,6%), it said.

Gross customs duty revenue for the month amounted to $28,66m, while net collections were $28,64m.

Net collections were 23,43% above the target of $23,20m and increased by 35,73% from the $21,10m for the same period last year.

In the outlook, Zimra said it would continue to intensify debt recovery measures and the control of the refund bill, as well as enhance automation, including e-services, invoice management and the electronic cargo tracking system.

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