By Alois Vinga
THE 2 percent tax introduced on electronic transactions October last year has generated RTGS$284 million for government in the first three months of 2019, a Zimbabwe Revenue Authority performance report has revealed.
According to report for the first quarter ended March 31, ZIMRA collected $282,843,450.27 surpassing the initially set target of $150 million.
This means the tax authority collected $132 million more than it had anticipated at the quarter’s outset.
Collections from Individual Tax amounted to $235 million while corporate tax collections amounted to $242 million. This was above the target of $172 million, translating to a positive variance of 41 percent.
Excise duty collections amounted to $566 million against a target of $242 million, thereby translating to a positive variance of 134 percent.
“Positive performance is attributed to the significant contributions of the Intermediate Money Transfer Tax, Corporate Income Tax and Excise Duty.
“This is buttressed by the authority’s revenue enhancement measures and strategies aimed at promoting voluntary compliance,” read the report.
During the first quarter, gross collection amounted to $2 billion which was 42 percent of the targeted $1.5 billion.
After deducting refunds, net collections for the period stood at $1.9 billion and compared to the same period in 2018, gross collections grew by 85.13 percent.
“Despite the macro economic challenges, that the country is currently facing, revenue performance is anticipated to maintain a positive trajectory. The fiscal and monetary policy position announced by government gives us the assurance that the economy is on a recovery path,” said ZIMRA in the report.
The taxman intends to meet future revenue needs by engaging tax payers in a bid to build a culture of voluntary compliance, maintain a stance of zero tolerance to corruption improve its operating systems and efficiency.
ZIMRA derives its mandate from the Revenue Authority Act [Chapter 23:11] and other subsidiary legislation, is responsible for assessing, collecting and accounting for revenue on behalf of the State through the Ministry of Finance.