The Zimbabwe Revenue Authority (Zimra) has surpassed its November 2017 revenue target by 30 percent to $352,24 million from $269,83 million driven by strong performance in collections from the Value Added Tax revenue head, data from the authority reveals.
Net collections were 24,29 percent above target. Zimra corporate communications manager, Canisio Mudzimu, told The Herald Business that revenue collection enhancement measures such as systems automation, audits and anti-corruption initiatives were bearing fruit.
He said measures to improve taxpayers’ awareness of their obligations and rights under fiscal laws were paying off, as the authority continues to surpass monthly targets.
“Gross collections for the month of November amounted to $352,24 million against a target of $269,83 million, which translates to a positive variance of 30,54 percent. Net collections of $335,38 million were 24,29 percent above target. The November 2017 net collections grew by 34,21 percent from the $249,90 million that was collected during the same period last year,” said Mr Mudzimu.
While presenting the 2018 National Budget, Finance and Economic Planning Minister Patrick Chinamasa, lauded initiatives implemented by Zimra to enhance revenue collections and he acknowledged that the measures were key to the improvements in revenue performance recorded during the year.
“Tax revenue collections by Zimra have been running at levels above 2017 Budget targets, with total receipts to November 9 percent higher than envisaged . . . Tax administrative measures instituted in the recent past are also facilitating improved revenue collection in 2017,” said Minister Chinamasa.
Some of the strategies that Zimra has implemented include intensified information dissemination, automation, expansion of the tax base, fighting corruption and enhancing operational efficiencies. Tax heads that spurred November collections were Value Added Tax (VAT), Customs Duty and Excise Duty. Zimra believes the positive performance is due to improved awareness by the taxpaying public of their rights and obligations under tax laws.
Revenue performance in the first 11 months of 2017 was higher than the same period in 2016, except for April and June. Zimra’s board believes that current collections are still a tip of the iceberg and is determined to stir up management to double the current measures to ensure increased compliance.
Lifestyle audits are also expected to continue, covering Zimra officials and high-profile individuals to ensure that taxpayers account for their incomes and pay their fair share of taxes as a contribution to the national economy.
The revenue measures that are being proposed seek to consolidate the gains realised by local industry through support measures provided by Government to improve the tax administrative system, thereby enhancing tax collection, as well as provide relief to Taxpayers.
The measures also seek to facilitate formalisation of informal business operations. More so, Government has started rolling out of electronic cargo tracking system to all borders as well as harmonising container depot operations to 24 hours in line with the border post operating hours.
Zimra will also speed up the connection of mobile scanners to ASYCUDA World Server in order to enable real time entry and timely acquittal of goods and implementation of the e-customs initiative for the advance clearance and online payment of relevant charges for tourist motor vehicles.
Article Source: The Herald