HARARE — Revenue collections for the third quarter of the year fell 9% behind target after most revenue heads underperformed, the tax agency said yesterday, warning of a flat performance in the fourth quarter as tight liquidity and poor economic fundamentals take their toll on company performances.
The Zimbabwe Revenue Authority (Zimra) collected $884,5 million against a target of $972,307 million as the individual tax bracket registering a growth.
Pay as you earn (PAYE) contributed $226,2 million against a target of $190 million as the tax agency stepped up audits and crackdown on defaulters.
Value added tax (VAT) on local sales collections amounted to $124 million against a target of $189 million as disposable incomes continued to fall while VAT on imports were lower at $126 million against the target of $132 million.
Customs duty collections were 25% below the $117 million target at $88 million and excise duty revenues fell by 10% to $123 million due to a decline in fuel imports.
The harsh economic environment, which saw companies failing to recapitalise their operations, saw corporate income tax at $92 million, missing the $104 million target.
Limited mortgage finance by financial institutions and the tight liquidity in the economy weighed down the capital gains tax collections which fell 38% behind the $8,8 million target.
Mining royalties also performed poorly, bringing in $33 million against a $48 million target, with Zimra citing the fall in gold output and poor mineral prices and lack of major sales of the country’s diamonds.
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About $624 000 was collected from tobacco levy against a target of $1,9 million with the poor results being attributed to the end of the selling season and the closure of the auction floors.
Other taxes contributed $29 million against the target of $23 million on the increase in withholding tax on tenders which contributed 80% of the collections.
— The Source
