Zimbabwe’s net revenue collections for the full year to December amounted to $5, 06 billion surpassing its target by about 18% as collections surged in the last quarter due to the 2% tax on electronic transfers introduced in October that year.
BY BUSINESS REPORTER
In 2017, net collections amounted to $3,75 billion, ahead of its target of $3,4 billion.
Government increased the Intermediate Money Transfer Tax to 2% per transfer in a bid to shore up state coffers in the southern African nation which solely relies on taxes to fund operations.
“Revenue collections in 2018 surpassed target with the Authority collecting a gross of $5,36 billion or 21,8% of GDP, which is 24.71% above the target of $4,30 billion. Net collections amounted to $5,06 billion, which is 20.57% of GDP,” Zimra said in its 2018 revenue performance report.
“As per its thrust for 2018, which emphasised on enhancing revenue collections for the fiscus, the Authority managed to surpass its set target of reaching the $5 billion mark. This positive performance is attributed, in part to the revision of the Intermediated Money Transfer Tax, price effect and improved efficiency and effectiveness of the ZIMRA team, as well as enhanced compliance level from taxpayers.”
The tax agency said that most of the revenue heads registered growth in collections with Intermediate Money Transfer Tax introduced in October 2018 growing by 848,30% compared to $18,69 million collected in 2017.
“A negative growth was only recorded on Non-tax revenue when comparing collections during the same period in 2017,” Zimra said.