Zimra collects $1,4bn – DailyNews Live

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HARARE – The Zimbabwe Revenue Authority (Zimra) has collected over $1,4 billion in the five months to May this year due to intensified audits and enforcement activities, improvements in operational efficiency, and client engagement initiatives that are being undertaken to enhance revenue collections.


The national tax collector surpassed the cumulative target of $1, 338 billion for the five-month period to May 2017 after gross and net collections amounted to $1, 428 and $1, 364 billion respectively.


In a statement yesterday, Zimra said gross revenue collections for May amounted to $307, 35 million against a target of $262, 21 million, while net collections after refunds were at $290, 68 million. 


Corporate Income Tax collections were $35, 08 million against a target of $9, 90 million, resulting in a positive variance of 254 percent.


Collections under this revenue head rose by over 460 percent as compared to the same period last year were $6, 26 million was realised.


Gross collections from Value Added Tax (Vat) on Local Sales amounted to $63, 12 million and, thus, exceeded the target of $55, 60 million by 14 percent.


Vat refunds for the month of May 2017 amounted to $16, 54 million, resulting in net collections of $46, 59 million. Net Vat collections were, therefore, 16 percent below the target. However, the revenue head (net collections) grew by 19 percent from $39, 05 million that was collected in May 2016.


Collections from Vat on imports for the month of May 2017 were $37, 39 million, which is 31 percent above the targeted $28, 50 million.


Revenue collections under this revenue head rose by 32 percent as compared to $28, 26 million collected in May last year.


The positive performance of the revenue head can be attributed to an increase in foreign currency allocations to banks by the Reserve Bank of Zimbabwe to meet critical foreign payments.


Customs Duty gross collections amounted to $24, 98 million against a target of $23, 59 million, resulting in a positive variance of six percent.


Net collections amounted to $24, 88 million, which is five percent above the target of $23, 59 million.


Customs Duty refunds for the month amounted to $94 778, 04 while net collections rose by 14 percent from the $21, 86 million that was collected in May 2016.


Collections under Excise Duty were two percent above target. A total of $57, 34 million was collected against a target of $56, 24 million. Excise Duty collections increased by 12 percent compared to the $51, 22 million that was collected in May 2016.


The performance of the revenue head can be attributed to an increase in volumes of imported fuel and the introduction of Excise Duty on paraffin.


Individual Tax was the main contributor to the total revenue for May. The revenue head contributed $60, 62 million against a target of $63, 31 million, giving a negative variance of four percent.


The performance can be attributed to salary cuts and irregular salary payments. There was, however, a growth of seven percent from the $56, 54 million that was collected during the same period last year.


Zimra acting commissioner-general, Happias Kuzvinzwa, thanked the public for positively responding to the clarion call to comply with fiscal laws through paying taxes and duties on time and in full.


“Paying taxes and customs duties on time and in full is a sign of patriotism and contributes to the economic development of our beautiful nation.


“I therefore, urge our compliant clients to continue paying their taxes to build and dignify Zimbabwe. I wish to encourage people who are not paying their taxes to start playing their part in building the country,” he said.

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