- Gross revenue collections hit a record ZW$108.93 billion
- Net collections at ZW$106.64 billion are 13.53% above target
- Companies and Individuals contributed 21.44% and 16.94% respectively
- Net revenue collections for the first half of 2021 amounted to $195.18 billion, 8.16% above target
HARARE – Zimbabwe’s quarterly revenue collections continue to top expectations, aided recently by revenue enhancement measures implemented during the 2021 second quarter.
The country’s tax agency, the Zimbabwe Revenue Authority (ZIMRA) reported that gross revenue collections in the second quarter of 2021 hit a record ZW$108.93 billion, surpassing a set target for the quarter of ZW$93.93 billion, representing a positive variance of 15.96%.
In a statement accompanying the report, ZIMRA Vice-Board Chairperson, Josephine Matambo said the revenue enhancement measures implemented by the Authority during the quarter positively influenced revenue collections.
These include Intensified Intelligence Gathering, Foreign Currency Voluntary Disclosure Compliance Project, Risk Based Audits, Effective Debt Management and Joint Post Clearance Compliance Enforcement, which is meant to curb smuggling and other forms of evading trade taxes through engaging with other security agents during border patrols and roadblocks.
ZIMRA paid out ZW$2,29 billion refunds during the quarter under review, leaving net collections at ZW$106.64 billion, 13.53% above target.
Major contributors to net revenue collections for the quarter were Companies (21.44%), Individuals (16.94%), VAT on Local Sales (13.89%), Excise Duty (11.87%) and VAT on Imports (10.03%).
Matambo noted that the relaxed Covid-19 lockdown restrictions allowed most companies to resume operations and others to increase productivity.
“This buoyed with the increased access to foreign currency through the forex auction system and the intensified enforcement and revenue enhancement activities by the Authority resulted in enhanced revenue collections,” she said.
For Individuals, salary and allowances adjustments by most companies in the first quarter of 2021 are the major reasons behind the revenue head’s positive performance.
Cumulatively, net revenue collections for the first half of 2021 amounted to $195.18 billion after deducting refunds of $4.64 billion, and are 8.16% above target.
Going forward, Matambo said that the stabilisation of the exchange rates coupled with the decreasing inflation rates will, in turn, stimulate economic activity thereby enhancing revenue collections.
“The Authority will continue to implement its revenue enhancement activities and encourage clients to voluntarily comply with the tax laws and honour their obligations,” said Matambo.
“ZIMRA also encourages taxpayers to embrace and utilise its digital platforms in interacting with the Authority.”
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