Business / Economy
Zimra misses revenue target
23 Jan 2014 at 10:27hrs | Views
The Zimbabwe revenue Authority missed the budgeted $3,64 billion annual revenue collection target for 2013 after collecting $3,43 billion.
The 6 percent variance could be attributed mainly to the missed target of mining royalties.
The challenges faced by Government in auctioning diamonds last year resulted in a collective $133,7 million in royalties against a target of $245 million.
Zimra chairman, Mr Sternford Moyo said the country would be able to realise more revenue from diamonds following the green light to auction diamonds at Antwerp in Belgium.
Individual tax contributed $740,3 million against a target of $685 million following salary increments offered to employees during the year as well as bonuses and performance awards.
The revenue head's collections may improve slightly in 2014 because of the proposal to tax income above $20 000 at a flat rate of 50 percent.
Company tax underperformed after collections amounted to $401,1 million against a target of $457,4 due to the reduction in capacity utilisation. A significant drop in the revenue head is expected this year as companies are most likely to scale down operations due to the prevailing liquidity constraints. This also impacted negatively on Tax on domestic dividends and interest which brought in $28,5 million against $95,1 million.
Value added Tax improved with collections amounting to $1,20 billion for the year against a targeted $1,16 billion.
Tobacco levy raked in $9,9 million against a targeted $10 million due to a drop in prices during the season.
Revenue collected from Carbon Tax amounted to $36,8 million against a targeted $35 million while Excise duty brought in $510,1 million against a targeted $482,5 due to increased consumption of fuel which attracted an increased excise duty during the year.
Taxes on goods and services net collections amounted to $1,92 billion against a target of $2,04 billion with VAT contributing the bulk of the revenue.
Collections from other revenue heads were $114,67 million against a targeted $ 58,8 million resulting in a positive variance of 95 percent.
The 6 percent variance could be attributed mainly to the missed target of mining royalties.
The challenges faced by Government in auctioning diamonds last year resulted in a collective $133,7 million in royalties against a target of $245 million.
Zimra chairman, Mr Sternford Moyo said the country would be able to realise more revenue from diamonds following the green light to auction diamonds at Antwerp in Belgium.
Individual tax contributed $740,3 million against a target of $685 million following salary increments offered to employees during the year as well as bonuses and performance awards.
The revenue head's collections may improve slightly in 2014 because of the proposal to tax income above $20 000 at a flat rate of 50 percent.
Value added Tax improved with collections amounting to $1,20 billion for the year against a targeted $1,16 billion.
Tobacco levy raked in $9,9 million against a targeted $10 million due to a drop in prices during the season.
Revenue collected from Carbon Tax amounted to $36,8 million against a targeted $35 million while Excise duty brought in $510,1 million against a targeted $482,5 due to increased consumption of fuel which attracted an increased excise duty during the year.
Taxes on goods and services net collections amounted to $1,92 billion against a target of $2,04 billion with VAT contributing the bulk of the revenue.
Collections from other revenue heads were $114,67 million against a targeted $ 58,8 million resulting in a positive variance of 95 percent.
Source - www.businessdaily.co.zw
