Farirai Machivenyika Senior Reporter
The Zimbabwe Revenue Authority has surpassed its revenue target for the first quarter of the year, collecting over $2 billion, which is 41,5 percent above its set target of 1,4 billion.
The statistics were released by Zimra chairman Dr Callisto Jokonya in his revenue performance report for the quarter ended March 31.
“Revenue performance for the first quarter pf 2019 surpassed the set target in both gross and net terms. During the quarter, gross collections amounted to $2,059 billion, which was 41,5 percent against the set target of $1,455 billion .
“After deducting refunds of $114,98 million, net collections were $1,944 billion. This translates to a positive variance of 33,62 percent above the target of $1,455 billion,” Dr Jokonya said.
He said the figures of the first quarter had grown by 85,13 percent from the $1,112 billion collected in the same period last year while the net collections grew by 83,82 percent from last year’s $1,057 billion.
“Positive performance is attributed to the significant contributions from the Intermediated Money Transfer Tax, corporate income tax and excise duty.
“This is buttressed by the authority’s revenue enhancement measures and strategies aimed at promoting voluntary compliance,” he added.
In his analysis of specific revenue heads, Dr Jokonya said individual income tax was $235,91 million against a target of $235,21.
He attributed the marginal rise in beating the target due to salary adjustments made and cushioning allowances made to employees during the period under review.
Corporate Income Tax collected was $242,08 million against a target $172 million, translating to a positive variance of 40,74 percent.
“Gross VAT on local sales amounted to $336,7 million, up from the $265,699 million collected in Q1 of 2018. This translates to a positive variance of 9,28 percent above the set target of $308,1 million and a growth factor of 26,7 percent.
“After factoring VAT refunds of $114,35 million, net collections of $222,35 million were 27,83 percent below target. However, when compared to the first quarter in 2018, net collections grew by 5,15 percent from 211,45 million. The revenue head contributed 11,43 percentnof the total net collections during the quarter under review,” Dr Jokonya added.
In the period under review, Dr Jokonya said VAT on imports stood at $127,27 million and 8,23 percent above the set target of $117,6 million.
Customs duty was $91,52 billion, which was below the set target of $110,78 million.
“Excise duty collections amounted to $565,65 million against a target of $242,19 million. This translates to a positive variance of 133,5 percent. Excise duty collections increased by 142,44 percent from $233,32 million realised in the first quarter of 2018. The revenue head contributed 27,47 percent to total net collections during the first quarter of 2019.
“The performance of the revenue head is attributed to increase in the demands of diesel and petrol,” he said.
The IMTT collected was $282,84 million against a target of $150 million.
Dr Jokonya said the revenue targets were expected to continue on a positive trajectory going into the second quarter.
“Despite the challenges the economy is facing, revenue performance is anticipated to maintain a positive trajectory. The fiscal and monetary policies announced by Government give us assurances that the economy is on a recovery path,” he said.
He added that the authority would continue implementing strategies aimed at enhancing tax compliance and expanding the tax base.