Harare - The Zimbabwe Revenue Authority says gross revenue collections in the third quarter ended September amounted to $1.28 billion, surpassing a target of $1,089bn.

Net revenue collections for the third quarter improved by 22, 56 percent from the $967.76 million realised during the third quarter of 2017.

Major contributors to revenue were Excise Duty (21%), Net VAT on Local Sales (19%) and Individuals (18%).

Permanent Secretary in the ministry of Finance George Guvamatanga, who prepared the report under review pending appointment of a new Zimra board, after it was dissolved by the new Treasury boss Mthuli Ncube said the taxman had introduced rigorous measures which has resulted in improved compliance.

“The positive revenue performance is attributed to concerted effort by the Authority through rigorous revenue enhancement measures, an unwavering stance against corruption, increased use of electronic and mobile money in transacting which resulted in improved compliance.

“Third quarter 2018 has shown astounding improvement in all revenue heads in comparison to the same period in 2017. The intensive implementation of revenue enhancement measures by the Authority enabled steady inflows and reduced revenue leakages.

“Gross collections amounted to US$1.28 billion against a target of US$1.089 billion. After deducting refunds of US$95.94 million for the quarter, net collections stood at US$1.19 billion, which translates to 8.84% above the expected US$1.089 billion.”

Guvamatanga said revenue performance both on gross and net collections registered higher levels from last year’s levels for the same period, an indication of an improving operating environment for business and improved revenue collection measures.

“Individual Tax, Company Tax, VAT on Imports, Customs Duty, Excise Duty, Carbon Tax, Mining Royalties and Withholding Tax on Contracts surpassed set targets for the quarter.

“Performance of VAT on Local Sales was compromised by high VAT Refunds which amounted to US$94.67 million, an increase of 53.39 percent from the same period in 2017.

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