Zimra exceeds 2022 revenue target
Senior Business Reporter
The Zimbabwe Revenue Authority (Zimra) exceeded the 2022 annual revenue target by 26,47 percent to $2 trillion and the fourth quarter projection by 34,05 percent to $935 billion.
Last year, the authority targeted to collect $1,6 trillion. The tax collector attributed the increase in revenue to collection strategies that are paying off.
In a trading update for the period ended December 31, 2022, Zimra said individuals tax accounted for the biggest chunk of revenue collected at 18,88 percent.
“The authority collected total net revenue of $2 trillion in 2022 against a target of $1,6 trillion (26,4 percent) above target.
“Net revenue grew by 331,72 percent in nominal terms from 2021 and after adjusting for inflation net revenue grew by 51,97 percent. The real growth is a reflection that the authority’s revenue collection strategies are paying off as revenue collected is growing above inflation,” said the tax collector.
“Tax from Individuals exceeded the set target by 70,92 percent and revenue growth was 76,69 percent in real terms as compared to Q4 2021.”
The positive real growth is mainly attributable to salary adjustments, bonus payments, partial payments and full payments of salaries in foreign currency. Net collections from Value Added Tax on local sales grew by 59,99 percent in real terms from Q4 2021.
The real growth is mainly attributable to the authority’s fiscalisation enforcement strategies. Zimra said the positive growth is also a reflection of increased real consumption of goods and services in the 2022 festive season.
“Companies collections grew by 10,05 percent in real terms as compared to Q4 2021. The authority intensified various revenue enhancing activities like sector based audits and door-to-door visits to harness revenue from various economic sectors.
“The positive real growth is also attributable to increased foreign currency revenue from companies,” said the authority.
The customs and VAT on imports tax heads surpassed their targets by 39,46 percent and 52,51 percent respectively with the authority attributing the positive performance of the trade-related tax heads to the growth in imports, which grew, by 508,27 percent from Q4 2021.
Zimra cleared exports amounting to $1,28 trillion in 2022 up from $192,56 billion in 2021 (563,07 percent nominal growth). The following milestones to improve smooth-flow of goods and persons in and out of Zimbabwe were achieved in 2022.
“The Beitbridge Border post was modernised and new commercial and passenger terminals were commissioned.
“This has resulted in major improvements in clearance of goods and people as they enter or exit the country.
“There was a notable improvement in clearance of travelling passengers in and out of Zimbabwe during the 2022 festive season.”
Zimra said it is in the process of acquiring new heavy duty state -of -the -art scanners to improve turnaround times and efficiency in border inspections.
A new scanner was delivered to Beitbridge in December 2022 and is now in use. The authority continues to upgrade and automate customs clearance processes under the Customs IT System (ASYCUDA).
The authority is in the process of acquiring drones to be deployed to borders to detect and deter smuggling with four drones having been acquired for Beitbridge Border Post and will be fully operational during the first half of this year.
This year, Zimra expects to grow net revenue in line with the projected economic growth of 3,8 percent on the back of anticipated favourable international commodity prices, stable power supply, tight monetary and fiscal policies and continued use of the multi-currency regime.