THE Zimbabwe Revenue Authority (Zimra) missed its revenue collection target of $886,2 million in the second quarter of the year by 6% due to a myriad of economic setbacks among them liquidity constraints, company closures, scaling down of operations and retrenchments.
Own Correspondent
According to a performance report for the first half of the year, Zimra said net revenue collections in the three months from April to June totalled $873,6 million against a target of $886,2 million, representing a 6% variance as the economy continues on a downward path.
“Economic setbacks have consequently led to the shrinkage of the revenue base, resulting in the revenue agency’s marginal failure to meet the set targets for the second quarter,” Zimra said.
Net collections for the half-year ended June consequently dipped by 1% to $1,66 billion against a target of $1,67 billion. Gross revenue in the period, however, had surged by 4% to $1,73 billion.
Value added tax (VAT) contributed bulk of the revenue at $517 million representing 31% followed by Pay As You Earn recorded at $347 million constituting 21% and excise duty, which totalled $235 million representing 14%.
VAT was, however, 3% below a target of $535 million and was subdued by low capitalisation and liquidity constraints which hampered the performance of the tax on imports. Local sales constituted 54% of the VAT revenue while the remainder was levied on imports.
Individual tax in the period amounted to $347,3 million against a target of $308,3 million representing a 13% positive variance. Zimra attributed the positive performance of the revenue head to cost of living adjustments, back pay adjustments, bonuses and allowances such as school fees awarded to some employees during the first half of the year.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Company tax amounted to $185,1 million against a target of $205,1 million representing a negative variance of 10%.
The revenue authority attributed the decline in company tax revenue to the unavailability of affordable long term as well as working capital to finance operations and replacement of archaic equipment and machinery as such most companies were still operating below 50% capacity.
Collections from customs duty totalled $108 million in the first half of the year against a target of $180,3 million representing a negative variance of 4%. Revenue collection was subdued during the period due to a slump in imports as the country continues to battle with liquidity constraints.
Collections from excise duty were, however, 4% above target after a total of $235,5 million was collected against a target of $226,8 million.
Zimra said the excise duty on fuel was a main contributor under this revenue head contributing 69% while beer constituted 21% and the remainder was realised from tobacco, wines and spirits, secondhand motor vehicles and electric lamps.
In the same period $81,1 million was collected from mining royalties against a target of $107 million representing a negative variance of 25% was attributed the softening of international mineral prices especially gold.
The depressed performance in mining revenue was, however, an improvement from the $64,8 million recorded during the same period last year.
Twitter feedback @mudarikirig
