HARARE – Zimbabwe earned more in tax receipts including other revenue inflows during the just ended third quarter in a move attributed to improved compliance by industry and commerce.
According to the Zimbabwe Revenue Authority which is responsible for tax collections from custom duties to mineral royalties, despite Covid-19 restrictions for most of the duration under review, income inflows surpassed targets by over 40 percent.
A tax expert Mr Dumisani Ngwenya said the increase in tax receipts is also due to compliance by firms, including recovery in production.
The Zimbabwe Revenue Authority, or Zimra, collected Z$117 billion ($1.2 billion) in the third quarter. That’s above its target of just under Z$99 billion, despite the country having been subject to coronavirus restrictions for most of the quarter , the figures are highly commendable and should be used to sustain economic requirements, he said.
Another tax expert Mr. Simbarashe Hamudi predicted more revenues due to the easing of Covid -19 measures that have allowed businesses to open longer coupled with more vaccinations.
The easing of the Covid- 19 restrictions should further propel the revenues to improve based on current market developments, noted Hamudi.
The revenue report for the third quarter shows tax receipts were dominated by individuals and companies, Value Added Tax on local sales and excise duty.