ZIMRA’s Q3 net revenue collection 27% above target

Author Name
Respect Gwenzi
Author
Analysis 10 months ago

Harare – The Zimbabwe Revenue Authority (ZIMRA) has posted gross revenue collections of ZWL57 billion for the quarter ended 30 September 2020, 27% above the ZWL44.83 billion target set for the period mainly because of lockdown restrictions being eased consequently allowing the business to re-open and resume operations.

The revenue collected during the period was also 788.18% above the amount collected in the comparative period last year in nominal terms (ZWL6.42 billion) whilst gross collections were 31% above the target before the deduction of tax refunds of ZWL1.81 billion which brought net collections to ZWL57 billion.

In a revenue performance report for the period, ZIMRA vice chairperson, Josephine Matambo said the improved revenue was primarily attributable to the recovery and resumption of business operations.

“The revenue performance in the Third Quarter ended 30 September 2020 reflected an upward trajectory despite the challenges in the operating environment during the period. Covid-19 lockdown conditions were relaxed, enabling more businesses to resume operations, thereby enhancing their ability to meet their tax obligations,” she stated.

She also added that the monetary policy interventions enacted during the period also had a positive bearing on total tax collections.

“Furthermore, the monetary policy interventions that were done during this period inflated the amounts to be collected resulting in a corresponding positive impact to the revenues,” she said.

ZIMRA also focused no simplifying the tax payment process during the period under review by promoting the use of electronic platforms and have established additional payment relationships with OWNAI and One Money platforms and the authority is working towards being paperless soon.

Meanwhile the lion share of revenue collected came from Individual taxation which accounted for 15.26% of the total revenue collected due to continuous salary adjustments and cost of living adjustments that employers offered to their employees to counter rising inflation according to ZIMRA.

Companies contributed 14.63% into the pot mainly driven by the relaxation of lockdown conditions which resulted in more businesses resuming operations, restrictions of imports in line with COVID-19 measures which led to an increased demand for locally produced goods, as well as ongoing compliance enforcement projects which the Authority is implementing.

Excise Duty, VAT on Local Sales and VAT on Imports were also the other major contributors, contributing 14.17%, 13,24% and 13.08% respectively.

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