The Zimbabwe Revenue Authority (Zimra) collected over $13 billion in the first quarter of the year, beating the set target of $12,57 billion by 10,42 percent.
This was revealed by Zimra vice chairperson, Ms Josephine Matambo in her revenue performance report for the first quarter ending March 31, 2020.
“During the first quarter of 2020 the Authority collected net revenue of $13,88 billion, surpassing the set target of $12,57 billion by 10,42 percent,” she said.
“Revenue grew by 613,64 percent in nominal terms, from $1,94 billion realised in the same period in 2019. All revenue heads registered growth in nominal terms.”
Ms Matambo said major contributors to revenue were individuals (17 percent), excise duty (16 percent, companies and Value Added Tax on local sales both contributed 14 percent, while VAT on imports contributed 11 percent.
“The first quarter of 2020 was characterised by exchange rate-based price adjustments, which resulted in most tax payers realising higher sales revenue, thereby increasing their tax liabilities,” she said. “Individuals — the revenue head maintained positive performance as most employers granted their employees cushioning allowances and cost of living adjustments. Some resorted to aligning salaries with the interbank rate to ensure sustenance of their workforce in light of prevailing hostile economic conditions.
“The shortage of hard cash has enhanced the use of electronic and mobile platforms, which provide essential information for audits.” In her outlook for the year ahead, Ms Matambo said the global economy was facing an imminent recession due to the Covid-19 pandemic, whose impact on business will affect revenue collections.-herald
