News / National
Zimra gross collections above target
05 Sep 2017 at 13:45hrs | Views
The Zimbabwe Revenue Authority (ZIMRA) is confident of surpassing the 2017 annual target as the robust revenue enhancement measures being implemented are bearing fruit, with net collections for the month of August 2017 exceeding the target by 15 percent.
Gross collections amounted to US$338.29 million while refunds for the month were at US$30.35 million, resulting in net collections of US$307.95 million against a target of US$267.66 million. Net collections for the month increased by a phenomenal 20.59 percent from the US$256.01 million that was collected during the same period last year.
All major revenue heads - except for Individual Tax which slightly missed the target by 1.08 percent - surpassed the set targets for the month. Individual Tax, however, grew by 23.47 percent from August 2016 collections of US$51.17 million.
The sterling performance is mainly a result of automation initiatives, anti-corruption measures, skills realignment, improved staff supervision as well as risk-based audits that are being carried out by the Authority. In addition, ZIMRA is continuously following up on tax debts and negotiating with taxpayers for payment plans, as well as closely monitoring adherence to the agreed payment terms.
Corporate Income Tax (Company Tax) contributed US$17.26 million against a target of US$8.70 million. This translates to a positive variance of 98.44 percent. The positive performance of the revenue head can be attributed to enforcement projects that the Authority is carrying out as well as improved profitability by some companies.
Collections under Individual Tax amounted to US$63.18 million against a target of US$63.87 million. During the same period last year, collections under Individual Tax were US$51.17 million, which translates to a 23.47 percent leap in collections this year, courtesy of intensified enforcement measures by the Authority. However, the revenue head's performance continues to be affected by retrenchments, salary cuts and inconsistent salary payments by some companies.
Value Added Tax (VAT) on Local Sales recorded gross collections of US$92.34 million, which is 65.49 percent above the targeted US$55.80 million. VAT refunds for the month amounted to US$30.20 million, resulting in net VAT on Local Sales collections of US$62.14 million. This translates to 11.36 percent above the target. Net revenue collections increased by 34.07 percent from the US$46.35 million that was collected during the same period last year.
Modernisation initiatives being carried out by ZIMRA, such as the Fiscalisation programme, as well as the increased use of electronic payments - which leave an audit trail - have contributed to the positive performance of VAT on Local Sales. The introduction of Value Added Withholding Tax at the beginning of the year has also enhanced remittances under the tax head.
The increase in importations that attract VAT as companies retool and recapitalise, as well as the importation of taxable consumer goods buoyed the performance of VAT on Imports, whose collections were US$37.63 million. Collections under this revenue head were 26.27 percent above the target of US$29.80 million. There was a 25.81 percent increase in revenue collections this year as compared to the US$29.91 million that was collected in August 2016.
A total of US$61.94 million was realised from Excise Duty, which is 10.87 percent above the target of US$55.87 million. Collections increased by 5.48 percent from the US$58.73 million for August 2016. Significant contributions came from the supply of fuel (77.77 percent), beer (10.51 percent) and airtime (8.6 percent).
The positive performance of Excise Duty can be attributed to an increase in fuel imports due to the availability of foreign currency for priority imports. The implementation of the Electronic Cargo Tracking System is also substantially plugging loopholes for transit fraud, resulting in more declared fuel for the domestic market.
Gross Customs Duty revenue for the month of August amounted to US$28.66 million, while net collections were US$28.64 million. Net collections were 23.43 percent above the target of US$23.20 million and increased by 35.73 percent from the US$21.10 million for the same period last year.
Going forward, the Authority will continue to intensify debt recovery measures and the control of the refund bill; as well as enhance automation - including e-services, invoice management and the Electronic Cargo Tracking System. It is anticipated that the Zimbabwe Energy Regulatory Authority's (ZERA) fuel marking project will also assist in the detection of improperly imported fuel, which will in turn increase controls against transit fraud and recoveries from post-importation checks on fuel importers.
ZIMRA is also continuing with its information dissemination programmes and the anti-corruption drive to safeguard revenue and curtail any illegal and underhand dealings that defraud the fiscus.
Gross collections amounted to US$338.29 million while refunds for the month were at US$30.35 million, resulting in net collections of US$307.95 million against a target of US$267.66 million. Net collections for the month increased by a phenomenal 20.59 percent from the US$256.01 million that was collected during the same period last year.
All major revenue heads - except for Individual Tax which slightly missed the target by 1.08 percent - surpassed the set targets for the month. Individual Tax, however, grew by 23.47 percent from August 2016 collections of US$51.17 million.
The sterling performance is mainly a result of automation initiatives, anti-corruption measures, skills realignment, improved staff supervision as well as risk-based audits that are being carried out by the Authority. In addition, ZIMRA is continuously following up on tax debts and negotiating with taxpayers for payment plans, as well as closely monitoring adherence to the agreed payment terms.
Corporate Income Tax (Company Tax) contributed US$17.26 million against a target of US$8.70 million. This translates to a positive variance of 98.44 percent. The positive performance of the revenue head can be attributed to enforcement projects that the Authority is carrying out as well as improved profitability by some companies.
Collections under Individual Tax amounted to US$63.18 million against a target of US$63.87 million. During the same period last year, collections under Individual Tax were US$51.17 million, which translates to a 23.47 percent leap in collections this year, courtesy of intensified enforcement measures by the Authority. However, the revenue head's performance continues to be affected by retrenchments, salary cuts and inconsistent salary payments by some companies.
Value Added Tax (VAT) on Local Sales recorded gross collections of US$92.34 million, which is 65.49 percent above the targeted US$55.80 million. VAT refunds for the month amounted to US$30.20 million, resulting in net VAT on Local Sales collections of US$62.14 million. This translates to 11.36 percent above the target. Net revenue collections increased by 34.07 percent from the US$46.35 million that was collected during the same period last year.
Modernisation initiatives being carried out by ZIMRA, such as the Fiscalisation programme, as well as the increased use of electronic payments - which leave an audit trail - have contributed to the positive performance of VAT on Local Sales. The introduction of Value Added Withholding Tax at the beginning of the year has also enhanced remittances under the tax head.
The increase in importations that attract VAT as companies retool and recapitalise, as well as the importation of taxable consumer goods buoyed the performance of VAT on Imports, whose collections were US$37.63 million. Collections under this revenue head were 26.27 percent above the target of US$29.80 million. There was a 25.81 percent increase in revenue collections this year as compared to the US$29.91 million that was collected in August 2016.
A total of US$61.94 million was realised from Excise Duty, which is 10.87 percent above the target of US$55.87 million. Collections increased by 5.48 percent from the US$58.73 million for August 2016. Significant contributions came from the supply of fuel (77.77 percent), beer (10.51 percent) and airtime (8.6 percent).
The positive performance of Excise Duty can be attributed to an increase in fuel imports due to the availability of foreign currency for priority imports. The implementation of the Electronic Cargo Tracking System is also substantially plugging loopholes for transit fraud, resulting in more declared fuel for the domestic market.
Gross Customs Duty revenue for the month of August amounted to US$28.66 million, while net collections were US$28.64 million. Net collections were 23.43 percent above the target of US$23.20 million and increased by 35.73 percent from the US$21.10 million for the same period last year.
Going forward, the Authority will continue to intensify debt recovery measures and the control of the refund bill; as well as enhance automation - including e-services, invoice management and the Electronic Cargo Tracking System. It is anticipated that the Zimbabwe Energy Regulatory Authority's (ZERA) fuel marking project will also assist in the detection of improperly imported fuel, which will in turn increase controls against transit fraud and recoveries from post-importation checks on fuel importers.
ZIMRA is also continuing with its information dissemination programmes and the anti-corruption drive to safeguard revenue and curtail any illegal and underhand dealings that defraud the fiscus.
Source - businessdaily.co.zw
