Zimra collects $5 billion

Source: Zimra collects $5 billion | The Herald June 28, 2019

The Zimbabwe Revenue Authority said yesterday it collected about ZWL$5 billion in the first half of this year, out of its 2019 target of ZWL$9,6 billion.
Zimra commissioner general Faith Mazanhi said the agency was optimistic it would attain its target again this year, after managing to do so in the previous year.

“We engaged in a very aggressive voluntary compliance programme,” she said.
Zimra is the main source of funding for the Government budget.
With Zimra owed ZWL$5 billion in unpaid taxes, Ms Mazanhi said the tax collector had reached an understanding with a number of companies that were yet to settle their dues.

“We set up a standalone revenue unit to collect revenue that was owed,” she said, adding that private companies accounted for 76 percent of the debt.
“Companies have gone through a very difficult economic period for a number of years and some have come forward to make payment plans.”
Ms Mazanhi said most of the debt for parastatals, which account for about 16 percent of the total, was in terms of outstanding Pay As You Earn “which they would have budgeted for but end up not paying.”

She said last year, Zimra had registered 19 497 new tax payers, who contributed about 4,73 percent to tax income.
The agency’s cost of collection was 2,49 percent, which Mazanhi said was below the international benchmark of 3 percent.
To address the issue of corruption within the agency, Ms Mazanhi said lifestyle audits were being carried out.

“We have had a number of disciplinary hearings against those who were suspected to be corrupt,” she said.
In terms of its own financial performance, Zimra closed the period 2018 in a negative surplus position of ZWL$4,1 million, an improvement from the minus ZWL$13,6 million of the previous year.

Following a revaluation exercise, the agency closed the period with an income of ZWL$44,5 million compared to ZWL$13,6 million in 2017. — New Ziana.