The positive performance is attributable to higher collections in value added tax on local sales and imports, individual tax, excise duty and company tax.
THE Zimbabwe Revenue Authority (Zimra) recorded $1,03 billion in gross collections in the third quarter of 2017, 19,25 percent above its $863,56 million target.
In a revenue collection update for the three months between July and September, Zimra said the quarter’s takings were 13,3 percent higher than figures for the same period last year.
Net collections, after deducting $62,05 million in refunds, amounted $967,76 million. Net revenue was still 12,07 percent above target.
Zimra said the positive performance is attributable to higher collections in value added tax on local sales and imports, individual tax, excise duty and company tax.
In her commentary on the quarter’s revenue performance, Zimra chairperson Willia Bonyongwe said the economy had been driven by agriculture and mining over the period under review.
“The economic performance during the quarter remained good and the outlook remains bullish. The major drivers of the economy were essentially the Agriculture and Mining sectors. Mineral revenues grossed US$1 billion for the seven months from January to July 2017, while during the 2016/2017 farming season, maize grain reserves had surpassed one million tonnes by September 2017,” Bonyongwe said.
“On one hand, diamond production increased during the quarter as a result of capital injection into the Zimbabwe Consolidated Diamond Company. On the other hand, Government’s expansion of Command Agriculture increased production but also had a huge multiplier effect on the economy. The expansion into livestock, poultry and fishery to the mix, will boost aggregate demand.”
She, however, warned of the effects of the currency crisis on the economy’s prospects.
“This outturn glosses over serious threats to the economy, arising from the worsening liquidity crisis and shortage of foreign currency to fund critical inputs for industry and agriculture on time and adequately,” Bonyongwe said.
“Going forward, revenue performance could be adversely influenced by the fluctuations of key economic variables on both the domestic and global scene. Chief among these being the rising domestic inflation, continued forex shortages and the perennial liquidity crunch.”
Bonyongwe said it was critical for government to introduce significant incentives for exporters. “There is no alternative to increasing production and exports,” she urged.
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