News / Local
Zimra records Z$161bn gross revenue Q4 2021
31 Jan 2022 at 00:44hrs | Views
THE ZIMBABWE Revenue Authority (Zimra) has recorded Z$161 billion in gross revenue collections for the fourth quarter ended 31 December 2021, which is 48,9 percent above target.
Despite the inflationary pressures, the country's monthly revenue collections have remained on a positive trajectory having recorded significant growth since 2020 in response to prudent Government economic policies and revenue mobilisation strategies being pursued by Zimra.
In a revenue performance report for the period issued yesterday, Zimra deputy board chairperson, Mrs Josephine Matambo said the year 2021 ended on a positive note in terms of revenue collection as the country surpassed its set target.
According to the report, the companies tax head leads in terms of contributions at 20.18 percent, followed by individual tax at 17 percent, VAT local sales 14,4 percent, Excise Duty 12.4 percent, Intermediated Money Transfer Tax (IMMT) 10.48 percent, VAT on imports 9.3 percent and customs on duty at 5.8 percent.
The positive gains were achieved despite the biggest adversity posed by the Covid-19 pandemic, which has continued to negatively affect business operations as well as loss of life.
"Gross collections for the fourth quarter amounted to Z$161.08 billion, against a target of Z$108.17 billion (48.91 percent above target)," said Mrs Matambo.
"The authority paid out refunds of Z$3.90 billion during the quarter under review.
"Fourth quarter net revenue collections grew by 71.77 percent in nominal terms when compared to the ZW91.51 billion collected during the same period in 2020.
"After adjusting for inflation, net revenue grew by 8,81 percent in the fourth quarter of 2021 as compared to the same period in 2020."
Mrs Matambo said the boost in companies' tax was driven by timely reminders to taxpayers and improved capacity utilisation in the manufacturing sector, which has led to enhanced profitability.
She said the adoption and implementation of the electronic cargo tracking system was a game changer under the excise duty segment as it has curbed fuel smuggling, which was prejudicing the country of potential revenue.
Mrs Matambo said VAT on local sales performed above target in both net and gross terms riding on Zimra's media campaigns that educate the nation on fiscalisation and paying taxes in the currency used in trading.
Customs Duty and VAT on imports was mainly anchored by various industries that continued to import critical equipment and material for use in production processes, which enhanced collections under trade taxes.
This saw the import taxable base increasing by 74.37 percent from Z$65.08 billion in the fourth quarter of 20202 to Z$113.47 billion in the fourth quarter of 2021, said Mrs Matambo.
She said the IMMT revenue head made inroads with 10.48 percent boosted by on growing digital transactions due to non-availability of adequate cash to meet transaction needs of corporates and individuals.
Despite the inflationary pressures, the country's monthly revenue collections have remained on a positive trajectory having recorded significant growth since 2020 in response to prudent Government economic policies and revenue mobilisation strategies being pursued by Zimra.
In a revenue performance report for the period issued yesterday, Zimra deputy board chairperson, Mrs Josephine Matambo said the year 2021 ended on a positive note in terms of revenue collection as the country surpassed its set target.
According to the report, the companies tax head leads in terms of contributions at 20.18 percent, followed by individual tax at 17 percent, VAT local sales 14,4 percent, Excise Duty 12.4 percent, Intermediated Money Transfer Tax (IMMT) 10.48 percent, VAT on imports 9.3 percent and customs on duty at 5.8 percent.
The positive gains were achieved despite the biggest adversity posed by the Covid-19 pandemic, which has continued to negatively affect business operations as well as loss of life.
"Gross collections for the fourth quarter amounted to Z$161.08 billion, against a target of Z$108.17 billion (48.91 percent above target)," said Mrs Matambo.
"The authority paid out refunds of Z$3.90 billion during the quarter under review.
"Fourth quarter net revenue collections grew by 71.77 percent in nominal terms when compared to the ZW91.51 billion collected during the same period in 2020.
"After adjusting for inflation, net revenue grew by 8,81 percent in the fourth quarter of 2021 as compared to the same period in 2020."
Mrs Matambo said the boost in companies' tax was driven by timely reminders to taxpayers and improved capacity utilisation in the manufacturing sector, which has led to enhanced profitability.
She said the adoption and implementation of the electronic cargo tracking system was a game changer under the excise duty segment as it has curbed fuel smuggling, which was prejudicing the country of potential revenue.
Mrs Matambo said VAT on local sales performed above target in both net and gross terms riding on Zimra's media campaigns that educate the nation on fiscalisation and paying taxes in the currency used in trading.
Customs Duty and VAT on imports was mainly anchored by various industries that continued to import critical equipment and material for use in production processes, which enhanced collections under trade taxes.
This saw the import taxable base increasing by 74.37 percent from Z$65.08 billion in the fourth quarter of 20202 to Z$113.47 billion in the fourth quarter of 2021, said Mrs Matambo.
She said the IMMT revenue head made inroads with 10.48 percent boosted by on growing digital transactions due to non-availability of adequate cash to meet transaction needs of corporates and individuals.
Source - The Chronicle
