Zimra collects $1,4bn

Source: Zimra collects $1,4bn – DailyNews Live

BUSINESS WRITER      7 June 2017

HARARE – The Zimbabwe Revenue Authority (Zimra) has collected over $1,4
billion in the five months to May this year due to intensified audits and
enforcement activities, improvements in operational efficiency, and client
engagement initiatives that are being undertaken to enhance revenue
collections.

The national tax collector surpassed the cumulative target of $1, 338
billion for the five-month period to May 2017 after gross and net
collections amounted to $1, 428 and $1, 364 billion respectively.

In a statement yesterday, Zimra said gross revenue collections for May
amounted to $307, 35 million against a target of $262, 21 million, while
net collections after refunds were at $290, 68 million.

Corporate Income Tax collections were $35, 08 million against a target of
$9, 90 million, resulting in a positive variance of 254 percent.

Collections under this revenue head rose by over 460 percent as compared
to the same period last year were $6, 26 million was realised.

Gross collections from Value Added Tax (Vat) on Local Sales amounted to
$63, 12 million and, thus, exceeded the target of $55, 60 million by 14
percent.

Vat refunds for the month of May 2017 amounted to $16, 54 million,
resulting in net collections of $46, 59 million. Net Vat collections were,
therefore, 16 percent below the target. However, the revenue head (net
collections) grew by 19 percent from $39, 05 million that was collected in
May 2016.

Collections from Vat on imports for the month of May 2017 were $37, 39
million, which is 31 percent above the targeted $28, 50 million.

Revenue collections under this revenue head rose by 32 percent as compared
to $28, 26 million collected in May last year.

The positive performance of the revenue head can be attributed to an
increase in foreign currency allocations to banks by the Reserve Bank of
Zimbabwe to meet critical foreign payments.

Customs Duty gross collections amounted to $24, 98 million against a
target of $23, 59 million, resulting in a positive variance of six
percent.

Net collections amounted to $24, 88 million, which is five percent above
the target of $23, 59 million.

Customs Duty refunds for the month amounted to $94 778, 04 while net
collections rose by 14 percent from the $21, 86 million that was collected
in May 2016.

Collections under Excise Duty were two percent above target. A total of
$57, 34 million was collected against a target of $56, 24 million. Excise
Duty collections increased by 12 percent compared to the $51, 22 million
that was collected in May 2016.

The performance of the revenue head can be attributed to an increase in
volumes of imported fuel and the introduction of Excise Duty on paraffin.

Individual Tax was the main contributor to the total revenue for May. The
revenue head contributed $60, 62 million against a target of $63, 31
million, giving a negative variance of four percent.

The performance can be attributed to salary cuts and irregular salary
payments. There was, however, a growth of seven percent from the $56, 54
million that was collected during the same period last year.

Zimra acting commissioner-general, Happias Kuzvinzwa, thanked the public
for positively responding to the clarion call to comply with fiscal laws
through paying taxes and duties on time and in full.

“Paying taxes and customs duties on time and in full is a sign of
patriotism and contributes to the economic development of our beautiful
nation.

“I therefore, urge our compliant clients to continue paying their taxes to
build and dignify Zimbabwe. I wish to encourage people who are not paying
their taxes to start playing their part in building the country,” he said.