Zimra exceeds Q3 target by 27 percent

Harare (New Ziana) -The Zimbabwe Revenue Authority (Zimra) said on Monday it exceeded its third quarter target by 27.16 percent after collecting $57 billion as more businesses resumed operations following government relaxation of Covid-19 locked down regulations.

The government had tasked Zimra to collect at least $44.8 billion during the period.

Compared to the same period last year, collections in the third quarter surged a massive 788 percent from $6.42 billion.

The Zimbabwe government relies on internal revenue collections as it is not getting any assistance from outside to fund its budget like other African countries.

Zimra deputy board chairperson, Josephine Matambo said more businesses had re-opened after relaxation of the coronavirus lockdown restrictions, allowing them to meet their tax obligations.

“Furthermore, the monetary policy interventions that were done during this period inflated the amounts to be collected resulting in a corresponding positive impact to the revenues,” she said.

Matambo said all revenue heads recorded growth in nominal terms during the period with carbon tax at 917.78 percent having recorded the
highest growth, followed by tobacco levy at 147.56 percent, company tax at 147.37 percent and individual tax at 103.61 percent.

“The revenue head (individual tax) recorded positive performance due to continuous salary adjustments and cost of living adjustments that employers offered to their employees to counter rising inflation,” she said.

In the last quarter of the year, Zimra said it has been given a target to collect $172 billion, which is it optimistic of meeting due to
increased trade as more borders and companies re-open with the lifting of Covid-19 restrictions.

“The growth is expected to come from increased productivity with the opening up of more business sectors in the economy,” Matambo said.

“In addition, the government’s strategy to target low hanging fruits in various sub-sectors of the manufacturing industry is expected to
attract the much-needed investment for domestic production.”

New Ziana