Tawanda Musarurwa Senior Business Reporter
The Zimbabwe Revenue Authority (Zimra) expects to exceed the revised revenue target of $18,6 billion with cumulative revenues for the first nine months of the year at $11,48 billion — accounting for 62 percent of the mark.
Zimbabwe Revenue Authority (Zimra) vice board chairperson Josephine Matambo, said the tax collector was strengthening its systems in the last quarter, which will result in improved inflows.
“Some of the interventions earmarked for the 4th quarter include: strengthening of risk-based and sector targeted audits; intensification of debt recoveries through the implementation of a focused debt recovery project; increasing compliance through implementation of a compliance management programme and fighting corruption and prosecuting tax evasion offenders.
“These interventions, together with other
compliance and enforcement projects on IMTT, foreign currency traders, fuel, mobile transactions and other taxes should see Zimra’s cumulative collections
meeting and surpassing the 2019 annual target,” she said.
“The cumulative net revenue collections for nine months ending September 30, 2019 stood at $11,48 billion against a target of $10,52 billion. At this rate, Zimra is set to exceed the 2019 annual revised net revenue mobilisation target of $18,6 billion.”
For the third quarter, Zimra’s revenue collections totalled $6,59 billion, surpassing the target of $6 billion.
“Revenue performance for the third quarter of 2019 exceeded the set target on both gross and net positions.
“Gross for the third quarter of 2019 were $6,59 billion against the targeted $6 billion, thereby surpassing the third revised set target by 26,5 percent.
“After deducting refunds of $167,44 million for the quarter, net collection of $6,42 billion surpassed the target of $6 billion by 8,79 percent,” said Zimra.
The quantum of revenue for the third quarter was realised from individual tax, company tax, value added tax on imports, excise duty, dividends, fees, interests and remittances, withholding tax on contracts and tobacco levy.
But net VAT on local sales, carbon tax, mining royalties, intermediated money transfer tax, CGT& CGT withholding and other indirect taxes failed to meet their targets, said Zimra.
Meanwhile, the vice board chairperson also said Zimra was playing its part in terms of Government’s broader initiatives towards improving the Doing Business environment.
“Zimra’s new five-year strategy (2019-2023) is alive to the fact that the effectiveness and efficiency of exports and imports clearance at the borders have a direct bearing on our country’s ease of Doing Business Index. The same applies to domestic taxes processes, systems and procedures. The authority is thus making a drive to review, simplify and improve process efficiencies across the whole organisation,” said Ms Matambo.
“This will be achieved through a Business Process Re-engineering Project which will cut across all Zimra’s internal business processes and systems. Zimra has begun the process of acquiring a new Tax Revenue Management System. This new system is expected to eliminate a lot of manual processes, thereby improving service efficiency.”