ZIMRA surpasses Q3 revenue target

The Zimbabwe Revenue Authority (ZIMRA) has surpassed its third-quarter revenue collection target by over 27 percent despite the country’s economy still reeling under the effects of the Covid-19 pandemic.

In a revenue performance report for the quarter ended 30 September 2020, ZIMRA board vice chairperson, Josephine Matambo, disclosed that gross collections for the quarter were ZWL58.81 billion, translating to 31.19% above the targeted ZWL$44.83 billion.

“After deducting refunds of ZWL$1.81 billion, net collections came down to ZWL$57.00 billion,” said Matambo.

“This gives a positive variance of 27.16% against the target. Compared to the same period last year where ZWL$6.42 billion was collected, nominal net revenue collections grew by 788.16%. In nominal terms, all revenue heads performed better in Q3 2020 compared to the same period last year; this is attributed to inflationary pressures that the country has been experiencing during the greater part of 2020.”

She said the revenue performance during the period under review reflected an upward trajectory despite the challenges in the operating environment.

“Covid-19 lockdown conditions were relaxed, enabling more businesses to resume operations, thereby enhancing their ability to meet their tax obligations,” she explained.

“Furthermore, the monetary policy interventions that were done during this period inflated the amounts to be collected resulting in a corresponding positive impact to the revenues. Caution had to be taken in granting tax incentives in the Mid Term Budget Review process as the impact of the Covid-19 pandemic was not yet clear enough.”

The revenue enhancement measures implemented during the third quarter of 2020, Matambo said, included checking compliance status of VAT operators trading in foreign currency, debt follow-ups and stricter monitoring of debt payment plans, specific sector and tax type audits as part of risk management among others.

“Digital audits are also being carried out to reduce physical interaction and exposure to Covid-19,” she said.

“Roadblocks and border patrols were re-enforced to curb smuggling.”

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