Zimra misses revenue target

THE Zimbabwe Revenue Authority has missed its revenue collection target for the third quarter to September 30, 2013 after collecting $897 million against the budgeted $904 million.

While the 1 percent variance appears marginal, it certainly raises concerns that if inflows do not improve in the last quarter the taxman might fall short of treasury's $3,6 billion annual target.

But Zimra chairman Mr Sternford Moyo said he was optimistic that if the spirit of responsible citizenship continues, aided by improved economic outlook, the target for 2013 would be exceeded.

"The marginal variance was due to harsh economic conditions prevailing in the country and the sluggish economic performance during the run up to the harmonised elections," Mr Moyo said.

Mining royalties, which were expected to contribute the least compared to other major revenue heads, had the biggest target variance at 39 percent after inflows amounted to $39 million against a target of $63,7 million.

In the quarter under review, company tax contributed $102,4 million against a target of $105,2 million due depressed industrial performance as capacity utilization declined this year.

This negatively impacted on the performance of companies, and the performance of the revenue head as firms could not access lines of credit to recapitalize and replace obsolete equipment.

Value added tax underperformed after collections totaled $284 million against a target of $291 million.

Collections from customs duty came in at $91,8 million compared to the budgeted $94,1 million weighed down by capital equipment and raw material that attract low or no duty.