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