Zimra revenue increases 10.8%

THE Zimbabwe Revenue Authority says revenue collection in the second quarter to June 2016 increased by 10,8 percent to $867 million, but was three percent below the targeted figure of $893 million.

ZIMRA acting commissioner general Happias Kuzvinzwa said that this compares favourably with the first quarter revenue performance where gross collections were 9 percent below target.

He said the improved performance in the preliminary revenue figures show that initiatives to improve operational efficiency fight corruption and enhanced enforcement efforts are bearing fruit.

On the other hand, he said, net collections were 8 percent below target after processing refunds amounting to $41,6 million.

"This was a major improvement from preceding quarter where net collections were 16 percent below target. There was also 31 percent reduction in refunds from $61,32 million processed in the second quarter of 2015," acting commissioner Kuzvinzwa said.

He said that real-time connection of fiscal gadgets by the national revenue collector is making it increasingly difficult for the taxpayers to defraud Government through value added tax fraud.

"There has, thus, been an improvement in compliance levels, declaration of correct returns and payment of revenue" he said yesterday.

This tighter control measures has seen VAT on local sales for the period under review growing by over 3 percent from $187,89 million collected in the first quarter of 2016 to $194,62 million.

ZIMRA said it enhanced its enforcement strategies to curb transit fraud. As a result of these measures, ZIMRA said, three fuel tankers were recently seized in Karoi after the drivers offloaded fuel declared as being in transit to Zambia and filled the tankers with water. The drivers of the tankers are on the run and the Zimbabwe Republic Police continuing investigations on the matter.