ZIMRA surpasses Q2 revenue collection target

by Elijah Chihota

The new dispensation in Zimbabwe which was ushered in last November has seen improved economic growth on the backdrop of infrastructural development that has enabled the tax collector, the Zimbabwe Revenue Authority (ZIMRA) to collect a whopping US$1.298 billion during the second quarter of 2018 (Q2, 2018).

“Gross collections for the second quarter of 2018 (Q2, 2018) amounted to US$1.298 billion, which was 21.84% above the target of US$1.605 billion,” said the ZIMRA Board Chairperson, Willia Bonyongwe in a financial statement released this week.

“The (Q2, 2018) revenue performance was 43.47% above the US$874.96 million that was collected during the same period last year,” said Bonyongwe.

Exceptional contributions were realised from Company Tax, individuals and Value Added Tax (VAT) on local sales. “Highest contributors to total net revenue during the current quarter were Company Tax (18.04%), Individuals (17.61 %) and net VAT on Local Sales (17.56%),” said the revenue collector.

Over the past years, ZIMRA has been struggling to achieve its revenue collection targets owing to a depressed economy, which was characterised by rampant smuggling of goods which deprived ZIMRA of the much needed money. This was worsened by the country’s porous borders. The coming in of the new dispensation has seen a new thrust towards infrastructural development and rejuvenation of the economy which, in turn, has stimulated economic growth.