ZIMRA misses revenue target


Revenue collections  for the third quarter of the year fell nine percent behind target after most revenue heads underperformed, Zimbabwe’s tax agency said today, 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 registered 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 percent below the $117 million target at $88 million and excise duty revenues fell by 10 percent to $123 million due to a decline in fuel imports.

The harsh economic environment, which saw companies failing to recapitalise their operations and to retool, 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 percent 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.

About $624000 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 percent of the collections.- The Source


Don't be shellfish... Please SHAREShare on google
Share on twitter
Share on facebook
Share on linkedin
Share on email
Share on print

Like it? Share with your friends!

Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.


Your email address will not be published. Required fields are marked *