Zimra surpasses gross and net revenue targets for January
HARARE – The Zimbabwe Revenue Authority (ZIMRA) has surpassed gross and net revenue targets for January by over four percent and three percent respectively. The Authority collected gross and net revenue amounting to $264.79 million and $262.21 million respectively, against a target of $254.10 million. This translates to a growth in net revenue of over 13 per cent when compared to the $232.01 million which was collected during the same period last year.
The sterling performance was mainly driven by contributions from Value Added Tax (VAT) on Local Sales, which were 41 per cent above target with total net collections of $76.90 million. The increased consumption of goods which attract VAT during the festive season, coupled with use of plastic money and the ongoing fiscalisation project whose aim is to plug revenue leakages, saw gross VAT revenue rising by $13 million from the $66 million collected in January 2016.
The VAT refunds bill also plummeted to $2.57 million in January this year as compared to the $14.59 million paid out during the same period last year due to intensified audits and verifications.
The improved performance by ZIMRA comes at a time when the Authority has embarked on a massive exercise to curb illegal and underground activities such as tax evasion, smuggling, transfer pricing and corruption in order to enhance revenue collections.
The numerous strategies to grow revenue – which include extension of fiscalisation to all VAT registered operators, cargo tracking, automation, enhanced audit and investigation activities, information dissemination, and negotiation with taxpayers for payment terms, among others – are beginning to bear fruit as evidenced by January revenue collection figures.