Zimra tightens remuneration monitoring to boost tax earnings

via Zimra tightens remuneration monitoring to boost tax earnings | The Source  April 11, 2014

Zimbabwe’s revenue agency (Zimra) has tightened monitoring of individual remuneration, which has boosted revenue income for the first quarter, according to its first quarter report.

Individual taxes were up 15 percent to $193.3 million, contributing 23 percent to overall revenue as the revenue agency exceeded its target by two percent in the first quarter to March 31, earning $834.6 million against the $817.9 million target.

“The performance of the revenue head (individual tax) can be attributed to follow-ups and audits that the authority carried out specifically on remuneration,”  Zimra commissioner general Gershom Pasi said in the report.

Value added tax (VAT) from both imports and domestic sales contributed the bulk of the earnings at 25 percent or $211.6 million.

Revenue from customs duty fell 20 percent from a year ago to $71.2 million. Zimra says  revenue of $120 million was lost from customs due to “lack of lines of credit…which negatively affected local industry’s capacity to finance importation of goods.”

Excise duty earnings dropped seven percent to $109.8 million due to a reduction in the consumption of beer, tobacco and other excisable goods.

Mining royalties’ revenue beat targets by 154 percent to $79.1 million boosted by diamond earnings from two auctions held in the quarter.

Corporate tax amounted to $104.7 million, carbon tax $8.3 million and capital gains $8.4 million.

Revenue from domestic dividends and interest fell 33 percent to $7 million while taxes from heads such as banking levy, presumptive tax was at $30.5 million.