Zim misses revenue target

via Zim misses revenue target | The Herald October 28, 2014

Zimbabwe missed its revenue target in the quarter to September as most heads underperformed, a latest report on revenue performance by the Zimbabwe Revenue Authority shows.
Net revenue collections amounted to $884,5 million against a target of $972,3 million resulting in a negative variance of 9 percent. Most of the revenue was realised from value added tax, which contributed $250,2 million, followed by individual tax and excise duty which contributed $226,2 million and $122,9 million respectively.

Revenue from individual tax increased by 7 percent from last year’s third quarter collections of $211,3 million.

“The current positive performance of the revenue head can be attributed to on-going follow ups, revenue enhancing projects and audits that are being carried out by the Zimbabwe Revenue Authority,” commissioner general Mr Gershem Pasi said.

Total value added collections contributed 28 percent to total revenue. Gross collections were $325,7 million against a target of $321,4 million.

Value added tax refunds amounted to $75,9 million thus culminating in net collections of $250,2 million, which translates to a negative variance of 22 percent against the quarterly target.

Net VAT on local sales contributed 49,5 percent to total VAT revenue and 14 percent to total revenue. This represents an 8 percent decline in net collections from the same period last year where a total of $185,3 million was collected.

“The fall in industrial capacity utilisation which has resulted in reduced production of goods and services that attract VAT,” said Mr Pasi.
Mining Royalties contributed $33,1 million to total revenue against a target of $48,3 million resulting in a negative variance of 31 percent. During the same period last year, $24,9 million was collected which translates to a 25 percent increase in revenue collections.