The Zimbabwe Revenue Authority (Zimra) has surpassed its October 2017 revenue target by 24 percent to $333,73 million from $268,25 million target due to high collections in Value Added Tax, data from the authority shows. Net collections were also 19 percent above target.
Zimra corporate communications manager Canisio Mudzimu, told Herald Business that the revenue collection enhancement measures such as systems automation, audits and anti-corruption initiatives were bearing fruit.
“ZIMRA has surpassed the October 2017 revenue target after gross collections amounted to $333,73 million against a target of $268,25 million, which translates to a positive variance of 24,41 percent.
“After deducting refunds of $13,28 million, net collections were $320,44 million, which is 19,46 percent above the targeted $268,25 million.
“Net collections grew by 22,41 percent from the $261,77 million that was collected during the same period last year.
Tax heads that spurred October collections are Value Added Tax (VAT), Customs Duty and Excise Duty.
“The positive performance is attributed to improved awareness by the taxpaying public of their rights and obligations under tax laws,” said Mudzimu.
Revenue performance in the first 10 months of 2017 was higher than the same period in 2016, except for April and June.
The Zimra board believes that current collections are still a tip of the iceberg and is determined to stir up management to re-double the current measures to ensure increased compliance.
Lifestyle audits will also continue, covering Zimra officials and high-profile individuals to ensure that people account for their income and pay their fair share of taxes as a contribution to the national economy.
As Government is exploring options to broaden the tax base, the SMEs and Co-operatives Development Ministry has requested a resource envelope of $40 million from Treasury to formalise unregistered and non-compliant small businesses and encourage them to enter into direct synergies with the manufacturers across the country.