• ZIMRA targets US$5.65bn in second half collections after raising US$4.71bn in H1
• H1 revenue exceeded target by 16.14%, with corporate tax, VAT on imports and mining royalties leading growth
• The tax authority added 37,783 new taxpayers as digitalisation expanded the formal tax base

Harare  - The Zimbabwe Revenue Authority (ZIMRA) expects to collect US$5.65 billion in the second half of 2026 after raising US$4.71 billion in the first six months, setting up a full year revenue target of about US$10.36 billion if the authority maintains the pace recorded through June.

The Zimbabwe Revenue Authority collected US$4.71 billion in net revenue during the first half, 16.14% above its US$4.05 billion target and 46.73% higher than the US$3.21 billion collected in the corresponding period of 2025. In Zimbabwe Gold terms, revenue reached ZWG125.06 billion, 19.12% above the ZWG104.99 billion target, according to ZIMRA’s H1 2026 performance review.

The second half target therefore requires ZIMRA to collect about 20% more revenue than it collected in the first six months. That places the US$5.65 billion target above the first half run rate and makes the composition of tax collections more important than the headline growth rate as the authority moves into the second half of the year.

Corporate income tax, VAT on imports, mining royalties and customs duty were among the main revenue contributors during the period, with corporate income tax increasing 47.77%, VAT on imports rising 41.20%, mining royalties increasing 30.25% and customs duty rising 26.93%. VAT on local sales increased 22.03%, giving ZIMRA growth across several of its major revenue streams.

The revenue structure also remains concentrated. ZIMRA says its four largest contributors accounted for about 60% of total revenue, with PAYE contributing 18%, corporate income tax 15%, VAT on imports 13% and VAT on local sales 13%. The performance of these tax heads therefore carries considerable weight in determining whether the second half target can be achieved.

The composition of the first half also provides a clearer explanation for the scale of the collection. Mining royalties benefited from stronger activity and commodity related revenues, while VAT on imports and customs duty were supported by the volume and value of goods entering the country. Corporate income tax provided the largest growth rate among the highlighted revenue heads, increasing the contribution from the corporate sector to government revenue.

The tax base itself is expanding alongside collections. ZIMRA registered 37,783 new taxpayers during the first half, including 2,056 PAYE taxpayers and 955 VAT taxpayers, with the authority attributing part of the expansion to digital platforms supporting taxpayer registration and administration.

That expansion matters because a higher collection today can come from stronger economic activity, improved compliance or enforcement against an existing taxpayer base. A larger registered base creates an additional channel through which revenue can grow over time, provided newly registered taxpayers become compliant and remain within the formal tax system.

ZIMRA's filing data shows relatively high compliance among registered taxpayers. Large corporate income tax filing compliance stood at 98.1%, while medium corporate income tax compliance was 92.0%. The figures provide an indication of the reach of the authority's administration, although filing compliance does not necessarily translate into the same level of payment compliance.

The authority is also collecting more through its trade facilitation systems. During the first half, ZIMRA processed 285,631 declarations and recorded an average processing time of 33 minutes and 30 seconds, while high risk consignments accounted for 1,480 declarations. The performance points to the increasing role of customs administration in revenue collection as well as trade facilitation.

The second half target will therefore be tested across several revenue channels rather than through a single tax head. Corporate income tax will need to maintain its first half momentum, import related taxes will remain exposed to the value and composition of imports, while mining royalties will depend partly on mineral production and prices.

The concentration of collections also creates a transmission point for the wider economy. If corporate profitability, import activity and mineral revenues remain firm, ZIMRA has several established sources from which to sustain collections. A change in any of these underlying bases would carry through to government revenue because of their weight in the tax mix.

The authority's first half performance also comes with a broader formalisation effect. The addition of 37,783 taxpayers expands the pool from which future collections can be generated, while digital registration and tax administration give ZIMRA greater visibility over economic activity that may previously have remained outside the formal tax net.

The fiscal consequence of the second half target is substantial , if ZIMRA collects the full US$5.65 billion, total net revenue for 2026 would reach approximately US$10.36 billion, subject to the reported collection measure remaining comparable across both halves. That would place the authority's annual collections on a significantly larger base than the previous year.

The quality of that revenue will matter alongside the amount collected. Revenue driven by expanding formal activity, corporate earnings, mineral production and compliant import trade creates a different fiscal base from revenue generated primarily through intensified enforcement or one off payments.

ZIMRA's first half performance provides evidence of both stronger collections and a widening taxpayer base. The second half will establish whether that performance can be sustained at a higher monthly collection rate, with the US$5.65 billion target requiring the authority to collect roughly US$940 million a month between July and December.

That monthly requirement is about 20% above the US$785 million average collected during the first half. The test for the tax authority is therefore moving from exceeding its budget to sustaining a higher collection intensity for the remainder of the year, while preserving the compliance and taxpayer expansion gains recorded during the first six months.

For government finances, the outcome will determine how much domestic revenue is available to support expenditure without additional financing. For businesses, the composition of the collections will provide a further measure of where the tax burden is being generated across corporate earnings, consumption, imports, employment and mineral production.

 Equity Axis News