Zimra surpasses revenue target by 10%

The Zimbabwe Revenue Authority (Zimra) has exceeded its 2024 revenue collection target by 10.26%, raking in ZWG116.47 billion against a projected ZWG105.63 billion, according to its latest annual report.

The performance, which Zimra attributes to intensified tax collection strategies, expanded compliance initiatives, and digital innovations, was revealed during the release of the 2024 annual report on Monday.

Kudakwashe Zata, who represented Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube at the launch, lauded Zimra for playing a critical role in safeguarding Zimbabwe's financial foundation.

"I am pleased to note that Zimra has made commendable strides in fulfilling its broad mandate of revenue mobilisation, trade facilitation and compliance enhancement," said Zata.

He highlighted the successful rollout of the Tax and Revenue Management System (TAMS) as a milestone that has significantly modernised the authority's operations.

"This flagship digital initiative has redefined service delivery, streamlined tax interactions, and advanced our vision of a modern, technology-driven revenue authority," he said.

Zimra Commissioner-General Regina Chinamasa noted that the impressive performance was the result of strategic efforts to expand the tax base, boost compliance, and introduce new revenue streams. She said Zimra raised ZWG951.34 million from new tax registrations alone.

"In terms of actual results, we collected ZWG116.47 billion, exceeding our target by 10.26%. Revenue growth stood at 47.65% in real terms and 65.43% in nominal terms, with the cost of collection maintained at 2.03%," she said.

The report indicated that Value Added Tax (VAT) remained the highest contributor to revenue at 31.21%, followed by Pay-As-You-Earn (PAYE) at 19.38%, with the rest coming from various tax categories.

To tackle tax evasion and smuggling, Zimra introduced several measures including the e-tariff system, a revamped canine unit, and a drug surveillance initiative at the Beitbridge Border Post. These efforts led to 255 drug and contraband interceptions in 2024.

"We introduced the e-tariff, which provides easier access for commodity classification and duty estimation. This enhances transparency and addresses discrepancies in the import-export sector," Chinamasa said.

Zimra also enhanced cooperation with border agencies in neighbouring countries through cross-border data sharing to improve trade monitoring and compliance.

Chinamasa added that the drug detection unit, supported by trained dogs, has become a vital part of border operations, helping combat the influx of illicit substances. Beitbridge Border Post, one of the country's busiest, recorded a 5.91% increase in revenue collection during the year.

Zimra Board Chairperson Anthony Mandiwanza praised ongoing partnerships with other government bodies, especially local authorities, in expanding the tax base and improving enforcement.

"In collaboration with local authorities, Zimra is leveraging relevant data to register and segment target groups, which is critical to improving compliance coverage. This supports our rapid results framework for sector-specific revenue mobilisation," said Mandiwanza.

The authority's strong performance has been welcomed by the government as Zimbabwe pushes for fiscal consolidation and better public service delivery, with tax reforms at the centre of economic recovery efforts.