By Alois Vinga
THE increase in the use of electronic payments systems has significantly prompted a surge in revenue collections, the Zimbabwe Revenue Authority (ZIMRA) has reported.
In a second quarter report by the authority’s board chairperson, Josephine Matambo attributed the upsurge to increased electronic transfers.
“The Intermediated Money Transfer Tax (IMMT) revenue head contributed 8,9 % to total revenue collections. The increased use of electronic payment platforms is enhancing the performance of this revenue head,” she said.
The report shows that the tax authority had targeted $7 billion in collections but however surpassed the target after collecting $9,4 billion, surpassing the target by a whopping $2,4 billion.
In a similar period last year, ZIMRA managed to collect $2,1 billion, with the current figures showing a 344% increase.
Overall, gross revenue collections for the second quarter of 2021 amounted to $108,9 billion against a target of $93,9 billion which is 16 % above target.
The authority paid out refunds of $2.2 billion during the quarter under review while cumulatively, net revenue collections for the quarter were $106,6 billion translating to 13,53 % above the set target.
Matambo attributed the good performance to the healing economic fundamentals prompted by the inception of the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction platform among other factors.
“The stability in exchange rates and the decreasing inflation have instilled more confidence in business and performance of the economy as a whole, thereby boosting economic activity leading to a positive effect on tax revenue collections.
“The recent reports by World Bank and the International Monetary Fund that projected a 3.9 % and 6 % growth respectively for 2021 reinforce the optimistic expectation of a 7.5 % growth projected by the government at the beginning of the year,” she said.
Company contributions at $22.8 billion was the major revenue injector after surpassing the set targets by $5.1 billion .
Individuals also contributed immensely after injecting $18 billion against a target of $16 billion to record nominal growth of 421 %.
Added Matambo,” The stabilisation of the exchange rates , coupled with the decreasing inflation rates is increasingly instilling confidence in the economy. This will in turn stimulate economic activity thereby enhancing revenue collections.”