ZIMRA hopes to exceed $3.7 billion revenue target for this year

Zimbabwe’s tax agency hopes to surpass the 2015 revenue target of $3.7 billion despite missing last year’s fourth quarter forecast by 10 percent on the back of low economic activity, a senior official said.

According to the Zimbabwe Revenue Authority performance report for the year ending December 31 while total revenue collections marginally surpassed the target by one percent, fourth quarter net collections were $996.94 million against a target of $1.11 billion.

Net collections for the year amounted to $3.6 billion against a target of $3.82 billion.

ZIMRA commissioner general Gershem Pasi attributed this to low economic activity.

Last year government introduced new taxes and measures to stimulate exports in a bid to grow the fiscus at a time most companies are underperforming due to funding and use of antiquated technology.

“Revenues were suppressed by liquidity challenges, company closures and scaling down of operations,” Pasi said.

“I am optimistic that if the spirit of team-work, professionalism and hard-work continues to prevail and is augmented by improvements in the performance of the economy, the $3.7 billion revenue target for 2015 will be surpassed.”

He said individual tax, mining royalties and other taxes exceeded the target by 20 percent, 10 percent and 12 percent respectively. Royalties, Pasi said were boosted by some arrears from previous years which were paid up last year.

On the contrary, tobacco levy contributed $9.8 million, missing its target by eight percent.

Capital gains tax and capital gains withholding tax contributed $28.5 million, 10 percent lower than the target.- The Source

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