COVID-19 Impact: Customs Duty collections sluggish in Q3 2020

Author Name
Respect Gwenzi
Author
Analysis 10 months ago

“South Africa has opened its borders and cross-border trade is therefore expected to increase thereby feeding into higher collections in import duties”, ZIMRA said.

Harare – Customs Duties, which are usually among the top five contributors to Zimbabwe’s net revenue collections, only contributed 9.40% of total revenues during the third quarter ended 30 September 2020 due to the impact of the lockdown on imports, the Zimbabwe Revenue Authority (ZIMRA) said in a latest quarterly report.

The net revenue collections for the quarter were ZWL57.00 billion, 27.16% above the targeted ZWL44.83 billion.

According to ZIMRA, only food, medicines, protective clothing and machinery were being imported during the period and these were mainly either duty free or subject to duty rebates.

Following the outbreak of COVID-19, governments across the globe responded by enforcing nationwide lockdowns so as to curb the spread of the virus. The restrictions included travel bans and closure of ports of entry, thus minimising import activities.

Meanwhile, Other Taxes comprising Mining Royalties, Withholding Taxes and Other Taxes missed the quarterly targets, mainly due to operational challenges in the mining sector caused by energy shortages and the Covid-19 pandemic.

Leading the revenue collections for the period was Individuals (15.26%), Companies (14.63%), Excise Duty (14.17%), VAT on Local Sales (13.24%), VAT on Imports (13.08%) followed by Customs Duty.

ZIMRA said it is expecting momentum in the revenue collection to gain in the last quarter of the year with the revenue collection target for the year having been increased to ZWD172 billion, partly anchored on relaxation of travel restrictions.

“South Africa has opened its borders and cross-border trade is therefore expected to increase thereby feeding into higher collections in import duties”, ZIMRA said.

Equity Axis News

 

Markets ● 3 days ago
Fair Value Adjustments Wipe-Out First Mutual HY-21 Profits

Half-year results for the property and insurance Group largely reflected improvements from prior year performance. GWP ↑ 71%Rental Income ↑ 53%Profit ↓ 121% The Group’s Gross Premium Written grew to ZWL 5.4 billion in the period, a 71% inflation-adjusted increase. Despite marginal investment property gains recorded in US$ terms, a ZWL 1.6 billion fair value loss was incurred after conversion of...


Markets ● 6 days ago
Mixed Fortunes In NMB's HY-21 & What Lies Ahead

ZSE-listed financial services firm NMB Bank performed well in the six-months ended 30 June 2021, as net-income grew 105% to settle at ZWL 716.2m from ZWL 348.8 million recorded in the previous comparative period. The remaining six-month period of the year however remains cloudy, with internal uncertainties stemming from the Bank's tech investments. Fee & Commission Income ↑ 128% FX Gains ↑ 74%...

Markets ● 1 week ago
Low Forex Supplies Threat To Proplastics Inventory Management

The ZSE’s piping specialist managed to double revenue from the previous half year period, overturn a loss and maintain a solid financial position. Revenue (infl.adj) ↑ 120% Profit ↑ 197% Despite the generally positive set of financials recorded in the period, the Group continues to face logistical constraints stemming from foreign currency shortages. In its most recent set of fina...

Stock Market ● 2 weeks ago
ZSE halts bloodbath as market heavies recover

The ZSE somersaulted almost erasing its prior session loss as demand recovered in Tuesday’s trades. The All Share Index notched by 0.67% to close at 6645.03 points. Gains were stimulated by market heavies after a huge jump of 1.4% which outweighed the 0.87% decline in penny stocks. The positive sentiment was spread across bourses as Padenga firmed by 20% on the VFEX after trading a total of 5...

Markets ● 2 weeks ago
All-Round Growth Recorded in Latest Cassava Trading Update

Cassava Smartech's performance in the quarter ended 31 August 2021 was well-rounded and reflected significant growth from the previous year’s comparative period. Group Revenue ↑ 70% Wallet Funding ↑ 54% Steward Bank Revenue ↑ 300% Group revenue rose by 70% in the period and was driven by higher transaction activity than 2020’s comparable period. Similarly, the Group reported a 63% revenue...