EDITORIAL COMMENT: Zimra must plug leaks to collect more

Latest indications that the Zimbabwe Revenue Authority (ZIMRA) surpassed its gross and net revenue targets for last month by 17 percent and 11 percent respectively is a positive development.This should enable Government to attend to pressing matters. Gross revenue collections for the month amounted to $307,35 million against a target of $262,21 million and net collections after refunds were at $290,68 million.

The improvement in revenue inflows should give Government leeway to reduce its debts, while also continuing to meet recurrent expenditure.

One of Government’s biggest challenges has been the timeous payment of civil servants’ salaries and bonuses, which it has had to stagger due to inadequate revenue inflows. It is, therefore, critical that Zimra, as the main contributor of revenue into the fiscus, should continue on this growth path.

Zimra should be commended for rolling out several initiatives since last year which have started bearing fruit and transforming it into one of Government’s best performing institutions.

The tax collector has been intensifying audits and enforcement activities, improving operational efficiency, and client engagement to enhance revenue collection.

It has also been rolling out automation, fighting corruption and commissioning its electronic cargo tracking system that has already yielded positive results.

In February, Zimra intercepted four fuel tankers filled with water at Chirundu Border Post after the drivers had allegedly declared that they were on their way to the Democratic Republic of Congo and so had not paid duty at the border.

Fuel that had been in the tankers was offloaded in Harare after they took a detour to Chitungwiza on their way to Chirundu.

This monitoring of potential revenue sources has enabled the revenue authority to meet its targets so far this year, which is an improvement from the past two years where it has been missing them.

Zimra surpassed its cumulative target of $1,33 billion for the period January 1 to May 31 after realising gross and net collections of $1,42 billion and $1,36 billion respectively, which has enhanced its chances of ending the year on a positive note.

It also exceeded its first quarter target, after gross collections amounted to $862,47 million and net collections stood at $826,63 million, against a target of $812,94 million.

While some ground has been covered, there is a lot Zimra still needs to do to enhance revenue collection, especially stamping out corruption. There are still reported cases of rampant corruption at the country’s ports of entry, with Zimra officials accused of facilitating the smuggling of goods into the country.

Most affected by this behaviour is Beitbridge Border Post, which is the busiest port of entry into the country and the region. While Government has responded by buying and installing closed circuit televisions (CCTVs) and lie detectors at border posts, it seems corruption cases still persist.

Zimra should expedite lifestyle audits that it has been carrying out on its staff and other people to stamp out corruption and enforce compliance with tax payment regulations.

Zimra board chairperson Mrs Willia Bonyongwe last year indicated that the authority will be carrying out a lifestyle audit since the number of posh houses being built in the country and flashy cars being driven on the country’s roads did not tally with the decline in individual tax recorded.

With more astuteness, Zimra is capable of collecting more revenue than it is getting at the moment. It is commendable that the tax collector has managed to meet its targets, but this should not mean basking in the glory of past achievements for the organisation.

We urge authorities at the revenue collector to do more to plug leaks which have been denying the fiscus its dues.

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