Treasury beats revenue target by $35,6bn

26 Oct, 2021 - 00:10 0 Views
Treasury beats revenue target by $35,6bn Finance and Economic Minister Professor Mthuli Ncube

The Herald

Tapiwanashe Mangwiro-Senior Business Reporter

Zimbabwe’s Treasury has beaten its revenue collection targets for the nine months to September 2021 by $35,62 billion, Finance and Economic Development Minister Professor Mthuli Ncube said at the pre-budget seminar in Victoria Falls last week.

Despite the Covid-19 induced level four lockdown during the first and second quarters of this year, total revenue collections during  the period under review amounted to $317,37 billion, which was significantly ahead of the Treasury’s target of $281,75 billion.

“As of September 2021, our revenue stood at $317,37 billion from an expected revenue collection of $281,75 billion by September, 2021” Minister Ncube said. 

Tax on income and profits was the main driver of revenue, as it accounted for 37 percent of collections. Value Added Tax (VAT) and excise duty came in second and third places, as they contributed 24 percent and 10 percent to inflows, respectively.

“Excise duty exceeded expectations due to increased alcohol sales in the year, particularly the first half of the year. VAT revenue increase was mainly caused by increased disposable income from civil servants salaries which are also usually mirrored by the private sector,” the finance minister added.

Tax revenue amounted to $300,63 billion, from a projected $279,22 billion, while non-tax revenue contributed $16,74 billion from an anticipated amount of $2.53 billion.

In the 2021 National Budget, the Treasury  projected revenues of $390,8 billion, but indications are that revenue would be around $495,01 billion at year end, which is 16,6 percent of
gross domestic product.

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