Business / Economy
Zimbabwe Revenue Authority surpass revenue targets
29 Jul 2011 at 04:50hrs | Views
THE Zimbabwe Revenue Authority's total gross revenue collections for the six months to June 30 stood at $1,3 billion, ahead of a target of $1,15 billion. VAT, individual tax, and customs duty contributed $507,1 million, $268,9 million and $163,1 million, respectively.
This was largely driven by revenue performance for the second quarter of the year, which saw total gross collections amounting to US$675,9 million against a set target of $595,6 million.
All the revenue heads, save one (other taxes) performed ahead of set targets during the period under review.
VAT collections for the period variance with the target was 8 percent, resulting in $507,1 million being collected against a target of $470,4 million.
With respect to income tax (individuals), collections were $268,9 million against a target of $217,1 million.
Corporate tax contributed $136,6 million against a target of $90,2 million.
A total of $163,1 million was collected as customs duty against a set target of $149,1 million. These collections rose by 14 percent from the prior comparable period last year, which stood at US$143,1 million.
Excise duty collections amounted to US$141,3 million against a target of US$115,5 million. Zimra reported that excise on fuel was the main contributor (63 percent of total excise duty revenue), while beer weighed in with 26 percent.
Other taxes (comprising domestic dividends and interest, other income tax, tobacco levy, other indirect taxes, non-tax revenue and carbon tax) amounted to US$77,8 million against a target of US$108,1 million resulting in a 28 percent negative variance.
Zimra reported that other indirect taxes contributed the bulk of the revenue, having been boosted by royalties on minerals.
The Government is currently working on tax reform initiatives including the introduction of a Fiscalised Electronic System meant to enhance compliance and minimise leakages.
This was largely driven by revenue performance for the second quarter of the year, which saw total gross collections amounting to US$675,9 million against a set target of $595,6 million.
All the revenue heads, save one (other taxes) performed ahead of set targets during the period under review.
VAT collections for the period variance with the target was 8 percent, resulting in $507,1 million being collected against a target of $470,4 million.
With respect to income tax (individuals), collections were $268,9 million against a target of $217,1 million.
A total of $163,1 million was collected as customs duty against a set target of $149,1 million. These collections rose by 14 percent from the prior comparable period last year, which stood at US$143,1 million.
Excise duty collections amounted to US$141,3 million against a target of US$115,5 million. Zimra reported that excise on fuel was the main contributor (63 percent of total excise duty revenue), while beer weighed in with 26 percent.
Other taxes (comprising domestic dividends and interest, other income tax, tobacco levy, other indirect taxes, non-tax revenue and carbon tax) amounted to US$77,8 million against a target of US$108,1 million resulting in a 28 percent negative variance.
Zimra reported that other indirect taxes contributed the bulk of the revenue, having been boosted by royalties on minerals.
The Government is currently working on tax reform initiatives including the introduction of a Fiscalised Electronic System meant to enhance compliance and minimise leakages.
Source - Byo24News
