Zimbabwe surpasses first quarter revenue collection target by 6 percent

Bonyongwe said government’s policy to restrict imports had negatively impacted on the revenue head.

Revenue from excise duty declined by 6 percent to $150 million.

“The performance of the revenue head can be attributed to low consumption of excisable products such as beer and tobacco due to the low disposable income and liquidity crisis in the absence of a credible alternative payment system,” said Bonyongwe.

“There is still need to improve connectivity and hardware investment to make plastic money universally accessible and efficient, even in urban areas.” 

Bonyongwe said consumption of petroleum products had declined due to the country’s weak economic performance and also “significant smuggling and transit fraud.”

Petrol imports during the quarter declined from 113.86 million litres last year to 99.72 million litres.

Diesel imports declined from 190.14 million litres during the first quarter last year to 180.93 million litres.

Mining royalties increased by 22 percent to $16 million reflecting the improvement in mineral production, particularly for gold and platinum and the recovery in global mineral prices. – The Source

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