Zimra surpasses revenue target

The Zimbabwe Revenue Authority (Zimra) collected $1,99 trillion in net revenue last year, 14 percent above the target of $1,60 trillion spurred by milestones registered in the agricultural sector.

Board chairman, Mr Anthony Mandiwanza said following the relaxation of Covid-19 related restrictions, domestic economic activity relatively improved in 2022 on the back of improved performance in various sectors led by a boom in agricultural production.

The country had a strong performance in agriculture, with key crops surpassing output targets due to a better season.
For instance, tobacco production has reached 290 million kilogrammes, significantly higher than the 230 million kg initially projected.

Similarly, wheat and maize output is also expected to breach record levels while cotton production is expected to increase by 100 percent to 100 000 tonnes this year.

Zimra said the improvement was also supported by tight monetary and fiscal policy measures, which helped stabilise the domestic economy. The stability improved the generation of taxable income from companies, employment and trading of goods and services among others.

To that end, outlining Zimra's annual performance for the year ended December 31, 2022, Mr Mandiwanza said the revenue authority surpassed its 2022 annual target by 26,47 percent.

"Between 2021 and 2022, the normal and real revenue grew by 332,3 percent and 39,8 percent respectively, therefore the Authority contributed significantly towards Domestic Resource Mobilisation which is necessary for the implementation of the Government's National Development Strategy (NDS1) and the National Vision 2030- Towards a Prosperous and Empowered Upper Middle-Income Society by 2030," he said.

Mr Mandiwanza said this was achieved through directing management on strategic areas aimed at increasing revenue collection, reducing cost of collection, deepening and widening the tax base, embracing digitisation, innovation and improving service delivery.

This year, the tax collector expects revenue to grow to levels above 19 percent of the gross domestic product.
According to Zimra, real growth revenue collection increased from US$3,5 billion in 2020 to US$5,2 billion in 2021.

There was a 27 percent US dollar revenue collection increase in 2021 to 49 percent in 2022.

In its recent annual bulletin Zimbabwe Public Debt Management Office, a department in the Ministry of Finance and Economic Development said the country's economy is projected to grow by 5,3 percent this year, better than initial estimates, on the back of improved farm yields, better electricity supply, and strong mineral prices.

The revised economic growth is ahead of estimates by the International Monetary Fund (IMF), the World Bank, and the African Development Bank (AfDB), which have projected the economy would expand by 2,5, percent 3,6 percent and 2,8 percent, respectively.

Zimbabwe's real gross domestic product growth moderated to three percent in 2022, down from 8,5 percent in 2021, due largely to exogenous and endogenous shocks.

Total output was further constrained by macroeconomic instability in 2022, arising from exchange rate depreciation and hyperinflation.