- Total gross revenue grew to ZWL117.16b
- Net revenue plummeted by 33.22% in real growth terms, surpassing target by 17.41%
- Individuals contributed most at 17.18%
- Beitbridge Border Post to become a world class commercial hub
Harare - Zimbabwe Revenue Authority (ZIMRA) is eyeing sustained growth in revenue collection for the remaining quarter of the year due to the easing of lockdown restrictions as well as the upgraded Beitbridge boarder post which is expected to promote ease of doing business through improved trade and travel as it registered revenue growth across key segments.
In a trading update for the third quarter ended 30 September 2021, the company registered revenue growth across key segments with gross revenue, actual net revenue and cumulative net revenue surpassing required targets by 18.62%, 17.41% and 11.57% in their respective orders.
Gross revenue collections for the third quarter amounted to ZWL$117.16 billion against a target of ZWL$98.77 billion from ZWL58.81 billion during the comparable quarter while actual net revenue advanced ZWL115.97 billion from ZWL57 billion in 2020 during the same period against a target of ZWL98.77 billion.
Cumulative revenue surged 103.45% to ZWL311.54 billion from ZWL57 billion collected in 2020 during the same period against a target of ZWL279.22 billion during the period under review.
Major contributors to net revenue collections were individuals, companies, Value Added Tax (VAT), local sales excise duty and Intermediate Money Transfer Tax (IMTT).
Individuals contribution was 17.18% ahead of all contributors. The positive performance of the revenue head is attributed to salary adjustments by some companies which cushioned employees against inflation, while companies contributed 17.18% owing to increased capacity utilisation which had previously decreased due to the Covid-19 induced lockdowns.
“During the quarter many companies resumed operations under the relaxed lockdown measures resulting in increased production levels.
Furthermore, there was increased demand for locally products,” the company’s vice Board Chairperson Josphine Matambo said in a statement accompanying the trading update.
Meanwhile, VAT on local sales contributed 16.13% to the net revenues. However, this was below the target with 21.55% as general consumption of goods was mainly concentrated on basic commodities which do not attract VAT while VAT on imports contributed 9.90%, 21.10% above the target as more companies resumed operations leading to an increased demand for imported industrial supplies.
However, customs duty missed the target by 2.80% because of COVID-19 induced travel restrictions.
Revenue collections from IMTT surpassed the quarterly target by 64.48% and its contribution to total revenue was 10.51%. This is attributed to increased use of electronic payment platforms as well as the rise in the prices of goods and services.
Matambo said the first phase of the modernization of Beitbridge Border Post into a world class commercial hub was completed with the upgraded infrastructure expected to go a long way in promoting ease of doing business through improved trade and travel facilitation.
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