- Net revenue collections were ZW$88.26 billion
- Q1 2021 collections grew by 86.78% compared to SPLY
- Companies were major contributors
HARARE – The gross revenue collections for the first quarter of 2021 (Q1 2021) came in at ZW$90.62 billion which is a 4.73% positive variance against a target of ZW$86.52 billion for the period. Net collections were ZW$88.26 billion after deducting refunds of ZW$2.35 billion, which gives a positive variance of 2.01% against the target.
In the revenue performance report, the Zimbabwe Revenue Authority (ZIMRA) vice board chairperson Josephine Matambo noted that the COVID-19 pandemic challenge which forced the nation to start the year with a national lockdown did affect the revenue collection process negatively, although the set targets were exceeded.
In comparison with the same period last year where a total of ZW$13.88 billion was collected, nominal net revenue collections grew by 536.08%.
After adjusting for inflation, net revenue grew by 86.78% in Q1 2021 as compared to the same period in 2020.”
Major contributors to net revenue collections for the quarter were; Companies (19.98%), Individuals (17.89%), VAT on Local Sales ((13.48%), Excise Duty (12.51%) and VAT on Imports (9.76%).
For the companies, the foreign currency auction system has assisted the industry to maintain or expand operations as companies were able to acquire raw materials at official exchange rates.
“Extra efforts made by ZIMRA to carry out compliance enforcement programmes in the difficult circumstances enhanced revenue collections for the first Quarterly Payment Date (QPD), said Matambo adding that the relaxation of the lockdown restrictions late into the quarter assisted companies to increase productivity, which resulted in improved revenue collections.
Customs Duty and Excise Duty collections were below set targets reflecting the impact of the lockdown, which forced the closure of ports of entry to the general public thus affecting revenue collections significantly.
Matambo said that the improvements being witnessed in the economic environment mainly the stabilisation of the exchange rate due to the forex auction system have created some confidence in the economy.
“The stability is expected to improve productivity and industrial capacity utilisation. Such developments are expected to enhance the revenue generation capacity for most tax heads, thereby the levels of tax revenue,” she said.
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