Business / Economy
Zimra misses revenue collections target
03 Feb 2016 at 14:17hrs | Views
The Zimbabwe Revenue Authority (Zimra) revenue collections for the just-ended year dropped to US$3,5 billion against a target of US$3,72 billion.
A Zimra 2015 revenue performance report shows that high costs of capital, a drop in global commodity prices, the strengthening of the US dollar against other currencies, as well as company retrenchments witnessed around July and August last year affected viability of firms and their ability to pay tax.
Individual taxes dominated revenue collections, accounting for 22 percent, while excise duty contributed 20 percent and value added tax (VAT) on local sales 16 percent.
VAT on imports had 13 percent while company tax contributed 12 percent.
Mining royalties for 2015 dropped to US$82,13 million from US$191,60 million on the back of a drop in the international commodity prices.
Revenue collections for carbon tax improved by 3 percent to US$35,99 million from US$34,98 million in 2014 due to an increase in import volumes of petrol.
The persistent challenging economic climate has resulted in Zimra's debt from taxpayers rising to US$1,97 billion from US$1,38 billion, according to the report.
Zimra says the sustainability of revenue collections in Zimbabwe will depend on the stabilisation of macro-economic fundamentals.
A Zimra 2015 revenue performance report shows that high costs of capital, a drop in global commodity prices, the strengthening of the US dollar against other currencies, as well as company retrenchments witnessed around July and August last year affected viability of firms and their ability to pay tax.
Individual taxes dominated revenue collections, accounting for 22 percent, while excise duty contributed 20 percent and value added tax (VAT) on local sales 16 percent.
VAT on imports had 13 percent while company tax contributed 12 percent.
Revenue collections for carbon tax improved by 3 percent to US$35,99 million from US$34,98 million in 2014 due to an increase in import volumes of petrol.
The persistent challenging economic climate has resulted in Zimra's debt from taxpayers rising to US$1,97 billion from US$1,38 billion, according to the report.
Zimra says the sustainability of revenue collections in Zimbabwe will depend on the stabilisation of macro-economic fundamentals.
Source - zbc
