Zimbabwe companies miss Zimra revenue target

THE ZIMBABWE Revenue Authority (Zimra) says companies, which are some of the major contributors to revenue, missed the target for the quarter by 17,8% due to depressed economic performance and negative impact of the COVID-19 pandemic.

The tax collector got $43,654 billion from companies against a target of $53,092 billion.

In a revenue performance report for the second quarter ended June 30 2022, Zimra acting Commissioner-General Regina Chinamasa said the authority would continue to enforce compliance to improve performance of the revenue head.

"Companies missed the target by 17,78%. Most companies are still depressed and struggling to recover from the effects of the COVID-19 pandemic," she said.

Net revenue collections amounted to $316, 81 billion, translating a positive variance of 63, 51% against a target of $193,75 billion.

In the same period last year $106,64 billion was realised, showing that nominal and real net revenue collections grew by 197,09% and 23,83%, respectively.

"Gross revenue collections for the quarter amounted to $332,26 billion against a set target of $193,75 billion, which translates to 71, 49% positive variance. Net collections were $316,81 billion after deducting refunds of $15, 46 billion," Chinamasa said.

"This gives a positive variance of 63,51% against the target."

Statistics form Zimra show that all other revenue heads besides that of companies surpassed the set targets in the second quarter.

The positive variance on Vat on local sales of 39,19% is attributed to high inflation which augmented the positive performance of this tax head.

The individuals' head, she revealed, performed above expectation due to salary adjustments, cost of living adjustments and payment of salaries in foreign currency to cushion employees from the high cost of living. It had a positive variance of 54,19%

Chinamasa said the Intermediated Money Transfer Tax head performed above the target by 102,54%, driven by electronic payment transactions which constitute over 90% of the total payments in the country.

Vat on imports performed above expectation by 115, 4% spurred by reduction in COVID-19 infections and relaxation of the associated stringent measures to curb its spread.

Customs and Excise duty tax heads surpassed their targets by 108,20% and 130,4%, respectively. The Russia-Ukraine conflict also resulted in increased value of imports. The increased volume and value of imports resulted in customs duty surpassing its set target.

Gross foreign currency collections for the quarter amounted to US$482,93 million, while net foreign currency collections amounted to US$448,86 million after deducting refunds of US$34, 07 million.

Chinamasa said the 2022 annual revenue target of $809,40 billion was likely to be reviewed upwards in the second half of this year.

Real revenue growth is anticipated to exceed 10% supported by the improving manufacturing sector capacity utilisation and the anticipated mining sector growth.