The Zimbabwe Revenue Authority (ZIMRA) today reported that annual gross collections for 2017 amounted to $3.98 billion compared to $3.4 billion in 2016 on increased use of plastic money and an effective anti-corruption drive.
Net collections amounted to $3.75 billion against the target of $3.4 billion, giving a positive variance of 10.29 percent.
Net revenue collections improved by 15.46 percent from the $3.248 billion collected in 2016.
“The concerted effort by the authority through rigorous revenue enhancement measures, an unwavering stance against corruption and resultant improved compliance by taxpayers contributed to this positive revenue performance,” said ZIMRA chairperson Willia Bonyongwe in a statement.
Gross VAT on local sales collections for the year amounted to $913.41 million against a target of $666.24 million.
Individual Tax amounted to $490.01 million, a 33.47 percent decline from the $736.53 million collected in 2016.
Company Tax contributed $730.5 million against a target of $337.2 million. Revenue collections increased by 114.4 percent from the $340.72 million collected in 2016.
During the period, Corporate Income Tax debt was $1.462 billion compared to $751.49 million in 2016.
“The positive performance can be attributed to improved profitability by some companies especially in the financial services sector. Increased use of electronic transactions also enhanced inflows, with the added advantage of traceable transactions for audit purposes,” Bonyongwe said.
Revenue collections under VAT on Imports increased by 8.28 percent to $387.92 million from $358.25 million in 2016.
Revenue from Excise Duty amounted to $675.9 million against a target of $674.72 million.
Excise Duty on fuel contributed 78.62 percent to this tax head. Beer and airtime contributed 6.96 percent and 8.09 percent respectively.
The rest of the revenue was from Excise Duty on tobacco, wines and spirits, second hand motor vehicles and electric lamps.
Mining royalties contributed $73.11 million which translates to 6.31 percent of the targeted $68.77 million.- The Source