Zimra surpasses May revenue targets on improved operational efficiency
HARARE – Zimbabwe Revenue Authority has surpassed gross and net revenue collections for May due to various enhancement measures it is pursuing although it remains to be seen whether the improved flow is stable and long lasting.
In a statement, Zimra said revenue targets for May were surpassed by 17% at gross and 11% at net due to intensified audits and enforcement activities, improvements in operational efficiency, and client engagement initiatives that are being undertaken to enhance revenue collections. Gross revenue collections for May amounted to $307.3 million against a target of $262.21 million, while net collections after refunds were at $290.68 million.
Zimra also surpassed the cumulative target of $1.338 billion for the period 1 January to 31 May 2017 after gross and net collections amounted to $1.428 billion and $1.364 billion respectively. Year-to-date gross and net collections as at 31 May 2017 were, therefore, 7% and 2% above the target respectively.
In Q1, Zimra exceeded target after gross collections amounted to $862.47 million and net collections stood at $826.63 million, against a target of $812.94 million.
Acting commissioner general Happias Kuzvinzwa said: “The sterling performance was attributed to a battery of revenue enhancement measures implemented by the Authority, which include automation, greater enforcement, the fight against corruption and the rolling out of the electronic cargo tracking system.”
Corporate Income Tax collections were $35.08 million against a target of $9.90 million, resulting in a positive variance of 254%. During the period under review collections under this revenue head rose by over 460 % from $6.26 million attained same period last year.
Gross collections from VAT on Local Sales amounted to $63.12 million exceeding the target of $55.6 million by 14%. VAT refunds for the month of May 2017 amounted to $16.5 milliom, resulting in net collections of $46.5 million while net VAT collections were, 16% below the target. However, the revenue head (net collections) grew by 19% from $39.05 million that was collected in May 2016.
Collections from VAT on Imports for the month of May 2017 were $37.39 mln, which is 31 % above the targeted $28.50million Revenue collections under this revenue head rose by 32 % compared to $28.2millionrealised same period 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.” said Kunzvinzwa
Customs Duty gross collections for the period amounted to $24.98million against a target of $23.5mln, resulting in a positive variance of 6%. Net collections at $24.88 million were 5% above the target of $23.59 million .
Customs Duty refunds for the month amounted to $94,7 million while net collections rose 14% compared to $21.86 million collected in May 2016. Collections under Excise Duty were two per cent above target. An increase of 12% on exercise duty collections which stood ta $57.34 million was achieved against target of $56.2million,a performance attributed to an increase in volumes of imported fuel and the introduction of Excise Duty on paraffin.
“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,” said Kuzvinzwa.