Zimra builds main office in Bulawayo

THE Zimbabwe Revenue Authority (Zimra) has started the construction of its main offices in Bulawayo, set to house all its operations as the tax collector seeks to improve efficiency.

Work on the site has started near the Zimbabwe International Trade Fair. Responding to questions from Sunday News, Zimra head of corporate communications, Mr Francis Chimanda confirmed the construction works although he did not divulge how much the project will cost.

"There is a Zimra office which is going to be built at 15th Avenue near ZITF.

However, construction works which are taking place are for the boundary wall and guard rooms.

Construction works for the main office building are going to commence at a future date to be advised.

The offices being built are going to be used to house all the Zimra operations in Bulawayo," said Mr Chimanda.

He said designing of the main office building was still in progress and therefore the total project cost will only be known after the designs have been finalised.

Mr Chimanda said construction which has started was on the boundary wall and gate houses and the funding requirements for the construction of the office building will be finalised once the building designs have been completed.

"Project duration will only be known once the contractor to build the offices has been hired.

The contractor will then come up with the programme of works which will then indicate how long the project will take."

Meanwhile, Zimra has said that it will exceed its 2022 annual revenue target of $809 billion after it surpassed its half-year target by 36,8 percent.

Acting Commissioner General Regina Chinamasa told stakeholders at an annual general meeting last Wednesday which had physical and virtual attendance that the authority had collected $491 billion during the half-year period to June 30, 2021, against a target of $359 billion target.

"During the first half of the year, $491 billion was collected against a target of $359 billion and we are hopeful of meeting the annual target.

"The 2022 Annual revenue target of $809,4 billion is likely to be reviewed upwards in the second half of 2022," she said.

Figures from the Zimbabwe National Statistics Agent (Zimstats) show that annual inflation increased from 60,7 percent in December 2021 to 191 percent in June 2022 creating scope for review of revenue collection targets.

In 2021, Zimra collected net revenue amounting to $463,57 billion which was 154,77 percent growth in nominal terms and 4,73 percent real growth from 2020.

According to the revenue authority, annual net revenue was 19,66 percent ahead of the target of $387,40 billion.

The top five revenue earners were Value Added Tax (VAT), which accounted for 25,17 percent, companies at 20,42 percent, individuals at 17,12 percent, excise duty at 12,29 percent, while the Intermediated Money Transfer Tax (IMTT) popularly known as the 2 percent tax accounted for 9,64 percent.

Figures from Zimra show that the debt to revenue ratio increased from 4,76 percent as at December 2020 to 7,17 percent as at December 2021.

Zimra's income statement had a surplus of $723,3 million compared to $187,2 million in 2020.

A surplus on revaluation amounting to $9,355 billion was realised due to revaluation of assets.

During the financial year 2021, capital expenditure for the year was $1,3 billion against a budget of $5,5 billion while recurrent expenditure increased by 262 percent from $5,733 billion in 2020 to $15 billion in 2021.