22 January 2018
Kasukuwere begs ED for forgiveness: official
Chinamasa to divert wages to devolution
Dump Mugabe regalia, Zanu PF official
Mugabe exploited my illiteracy: Mujuru
Engineers group to expose fake degrees
Grandpa, 83, says minor pestered him for sex
Poet poses as Zimra officer, blows $35k
Chocked as 2kg's of cocaine tested in court
Gemmology center in Mutare soon
NRZ loss as gold miners damage rail line
Unpaid Mr ugly reports sponsors to ZRP
Zim author releases new book in USA
Anger as Dembare approach City player
Cricket: ICC clears Zimbabwe's Vitori
Mnangagwa’s ‘New’ Zim merits support
Zhuwao: kleptocracy and EDiots in Davos
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
Tax collection six percent below target, mining royalties plunge: Zimra
29/07/2015 00:00:00
by Reuters
To present economic update Thursday ... Finance minister Patrick Chinamasa
Zimra duo cleared on bribery charges
ZIMRA tops revenue target by 5pct
Zimbabweans owe US$1bln in unpaid tax
Cut salaries, Zimra tells government

ZIMBABWE’s tax collections were six percent below target during the first half of the year while mining royalties and value added tax plunged, reflecting a struggling economy, the tax agency said on Wednesday.

The economy, where mining contributes around 17% to gross domestic product, is expected to struggle this year due to low commodity prices and a poor farming season.

Willia Bonyongwe, the chairperson of the Zimbabwe Revenue Authority (ZIMRA) said tax collections between January and June were $1.66bn, below the target of $1.76bn. The agency collected $1.72bn during the same period last year.

At $39.8m, mining royalties were 39% below target. When compared to the same time last year, mining royalties fell 65% from $112m.

"The performance of the revenue head (mining royalties) can be attributed to depressed international mineral prices," Mr Bonyongwe said in a statement.

Zimbabwe holds the world’s second largest platinum reserves and produces gold, chrome and iron ore.

Mining generates more than half of export earnings but weak global commodity prices, especially of platinum and gold, are expected to hit Zimbabwe’s earnings this year.

Bonyongwe said company tax was also 9% below target while value added tax (VAT) on the sale of local goods at $213 million was 33% short of target as consumer demand fell.

Businesses are struggling with high operating costs, competition from cheaper imports and biting electricity shortages and have been forced to retrench hundreds this year.

The government has said the economy will flatline at 3.2% this year, but the World Bank sees growth at 1%, while some economic analysts forecast a slide into recession for the first time since 2008.

Finance Minister Patrick Chinamasa is expected to present his half-year economic update to parliament on Thursday.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker