Harare – The Zimbabwe Revenue Authority (ZIMRA) says it collected $177.27 million from the Intermediated Money Transfer Tax (IMTT) buoyed by a 2 percent charge for electronic transfers introduced by Finance minister Mthuli Ncube in October last year.
According to the report released by the authority on Thursday, in the first nine months of 2018, IMTT collected $11,12 million.
Following the review of the tax to 2 percent on transactions above $10 from the initial 0,05c for all transactions, collections topped $166,15 million in the last quarter of the year after Treasury introduced a number of exemptions.
“Intermediate Money Transfer Tax enhanced revenue collections with a total of $177,27 million. A total of $11,12 million was collected from IMTT before the revision in the first nine months of 2018 whereas $166,15 million was collected after the revision for the last quarter of 2018.
“Most of the revenue heads registered growth in collections with Intermediate Money Transfer Tax introduced in October 2018 growing by 848.3 percent compared to $18.69 million collected in 2017,” read the revenue report.
In the report, revenue collections in 2018 surpassed target with the authority collecting a gross of $5,36 billion or 21,80 percent of the country’s Gross Domestic Product. The collections were 24,71 percent above the target of $4,30 billion, mainly attributed to the announcement of the 2 percent in October.
Zimbabwe is struggling to get financial support from international financial institutions such as the World Bank and the International Monetary Fund due to its high levels of debt, hence the government is heavily relying on internal sources of fund to support capital projects and social spending.
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