THE Zimbabwe Revenue Authority (ZIMRA) will continue meeting collection targets this year ensuring Government can finance expenditure, after it surpassed the 2020 target by over six percent.
In Zimra’s revenue performance report for the fourth quarter of last year by the organisation’s vice board chairperson Ms Josephine Matambo yesterday, Zimra said it collected $91,51 billion in that quarter, 11,72 percent above the $84,38 billion target, and so ending the year with net collections of $182,59 billion, which was 6,22 percent above the target of $171,9 billion.
The major contributors to the tax revenues were companies with $34,132 billion, followed by VAT at $33,519 billion while individual income tax contributions $28,438 billion. Excise duties brought in $25,824 billion and customs duties $14,573 billion.
Ms Matambo said last year had ended on a positive note despite Covid-19 owning to fiscal and monetary measures introduced by Government that brought stability that enhanced business viability and bolstered revenue inflows.
Some of the measures adopted by Zimra include wider checks on compliance for VAT by those trading in foreign currency, following up on debts and stricter monitoring of payment plans, enforcement of the electronic cargo tracking system and increased border patrols and roadblocks to curb smuggling.
The year ended with the completion of the Transitional Stabilisation Programme and the opening of the National Development Strategy 1 that will run until 2025 with Zimra pledged to play its part in supporting the country’s economic growth.
“For the year 2021, Zimbabwe’s GDP is expected to grow substantially and the Revenue Authority is required to collect $387,4 billion.
“Revenue collections are likely to remain positive given the Authority’s various revenue enhancement activities earmarked for 2021, which include the drive to tap into the digital economy and expand the tax base,” Ms Matambo said.
Zimra would continue with its business continuity plan and efforts to ensure that the country has enough resources to finance public expenditure in critical areas of social service provision and infrastructure development.
Some of the measures to expand the tax base through targeting the informal sector are contained in the 2021 national Budget recently signed by President Mnangagwa into law. – Herald