IMMT, Corporate income tax and excise duty spurs ZIMRA’s performance

Harare – Zimbabwe’s tax agency, the Zimbabwe Revenue Authority Revenue (ZIMRA) says performance for the first quarter of 2019 surpassed the set target in both gross and net terms with gross collections amounting to 1$2.059 billion, which was 41.50 percent against the set target of $1.455 billion.

Positive performance is attributed to the significant contributions from Intermediate Money Transfer Tax (IMTT), Corporate Income Tax (CIT) and Excise Duty. This is buttressed by the Authority’s revenue enhancement measures and strategies aimed at promoting voluntary compliance.

After deducting Refunds of $114.98 million, Net Collections were $1.944 billion. This translates to a positive variance of 33.62 percent above the target of $1.455 billion.

Compared to the same period in 2018, Gross Collections grew by 85.13 percent from $1.112 billion collected in first quarter 2018, which is above the annual inflation levels.

Similarly, Net Collections recorded a growth of 83.82 percent from $1.057 billion that was realized in the same period in 2018.

Individuals, Companies, VAT on Imports, Excise Duty, Other Indirect Taxes and Intermediate Monetary Transfer Tax (IMTT) performed above set targets.

“Worth noting is the performance of IMTT which realized $282.84 million against a target of $150 million. IMTT grew by 5333.99 percent from $5.21 million collected before change in policy in the first quarter of 2018.

“Most revenue heads experienced positive growth rates for the periods under review. A negative growth was experienced in Non-Tax Revenues, Carbon Tax, Withholding Tax on Contracts and Capital Gains Tax.

“IMTT experienced the biggest growth of 5333.99 percent from $5.21 million that was collected in the first quarter of 2018 before policy changes on IMTT rate. The spike indicates the structural break due to policy change and also is a true indicator of the positive impact that IMTT is having to total revenue collections,” said Zimra board chairman Dr Callisto Jokonya.

Equity Axis News

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