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Zimra nets $23,1bn revenue in 2019

by Staff reporter
26 Jun 2020 at 06:57hrs | Views
THE Zimbabwe Revenue Authority (Zimra) says it managed to collect a net revenue of $23, 19 billion in 2019 against a planned $18, 6 billion target for the year.

The tax authority is employing a number of strategies to maximise revenue collection to support national development projects.

Zimra Commissioner General, Ms Faith Mazani, said yesterday in a summary report during the parastatal's annual general meeting that they were targeting to collect $57,6 billion although they were yet to agree on the final projections with the Ministry of Finance and Economic Development.

She said during the same period under review the authority reduced transit fraud by 44 percent after successfully sealing many commercial trucks that passed through the country's borders.

Ms Mazani also said during 2019 Zimra realised a total of US$210 000 in penalties relating to transit fraud.

In general terms, transit fraud occurs when an importer declares that goods are passing through Zimbabwe to another country, but later delivers the same goods to the local market.

This resulted in Zimra employing the use of electronic cargo tracking and introduced the geo-fencing routing system on all transit trucks.

"On the restoration of the fiscal balance, Zimra collected net revenue of $23,19 billion against a target of $18, 6 billion and this was 24,65percent above the target," said the Commissioner General.

"In addition, we recorded a 358 percent nominal growth from 2018 and our net revenue to GDP ratio was 18 percent against the regional benchmark of 15 percent.

"During the same period under review our top six revenue performers were; excise duty (17,76 percent), individuals (14,80 percent), companies (13,75 percent), Value Added Tax (VAT) on local sales (13,18 percent), VAT on Imports (12,91 percent) and 11,44 percent was collected from the (2 percent) intermediated money transfer tax (IMTT). All these mounted to 83,84 percent of our total revenue collected".

Ms Mazani said among other strategies, Zimra's had strengthened partnerships with other law enforcement agents to combat corruption and also increased border surveillance to curb smuggling.

She said they had started using modern audit and investigation techniques to detect revenue declaration anomalies and this had resulted in the discovery of 485 vehicles, which had been irregularly imported. Ms Mazani said the prejudice of this irregular vehicle import was US$70 million.

"We have also signed a memorandum of agreement with the Zimbabwe Anti-Corruption Commission (ZACC) and we are now working in partnership to combat crime.

"In terms of plugging revenue leakages through the use of electronic cargo tracking seals, we managed to increase the number of sealed trucks by 27 percent from 31,701 in 2018 to 39, 601 last year thereby reducing the number of geo-fence violations by 44 percent," said Ms Mazani.

She said they were also using the Money Laundering and Proceeds of Crime Act to seize and attach properties acquired through fraudulent means. The exercise has seen 601 cases being investigated in 2019 with recoveries to collect a total of $153, 7 million underway.

The Commissioner General said to improve Zimra's role on trade facilitation, they had introduced the mandatory pre+clearance of cargo system at ports of entries.

"Further, we are increasing the number of Authorised Economic Operator Programme (AEOs) clients and participating in the setting up of the One Stop Investment Centre (OSIC)," said Ms Mazani.

"The authority is also contributing to the the Zimbabwe Special Economic Zone Authority and the Border Efficiency Management Systems (BEMS) activities.

"We have also upgraded our Automated System for Customs Data (ASYCUDA) to ease the way of doing business. At the same time we have commenced working on the dry ports projects as announced by Finance and Economic Development Minister (Prof Mthuli Ncube) in the 2020 annual budget speech," she said.

Source - chroncile

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