The Zimbabwe Revenue Authority (ZIMRA) is targeting to raise ZWL$172 billion in the last quarter of the year.
This may however be a bit too optimistic given the economic downturn caused by the Covid-19 necessitated lockdowns.
“Momentum in revenue collection is expected to be gained in the last quarter of the year with the revenue collection target for the year having been increased to ZWL$172 billion.
“The growth is expected to come
from increased productivity with the opening up of more business sectors in the economy.
“In addition, the Government’s strategy to target low hanging fruits in various sub-sectors of the manufacturing industry is expected to attract the much- needed investment for domestic production,” said ZIMRA chairperson Josephine Matambo.
“South Africa has opened its borders and cross-border trade is therefore expected to increase thereby feeding into higher collections in import duties.
“The weather forecasts are projecting good rains in the coming farming season; this boosts economic activity in all sectors as value chains can then be easily promoted.”
For the third quarter to September 30, 2020, the taxman exceeded its target by 27.16 percent after collecting ZWL$57 billion.
The Authority attributed the positive development to improved business activity due to relaxed lockdown restrictions.
The initial target for the third quarter was ZWL$44.8 billion.
Compared to the same period last year, collections in the third quarter surged a massive 788 percent from $6.42 billion.
“Furthermore, the monetary policy interventions that were done during this period inflated the amounts to be collected resulting in a corresponding positive impact to the revenues,” said Matambo.
According to ZIMRA, all revenue heads recorded growth in nominal terms during the period with carbon tax at 917.78 percent having recorded the highest growth, followed by tobacco levy at 147.56 percent, company tax at 147.37 percent and individual tax at 103.61 percent.
“The revenue head (individual tax) recorded positive performance due to continuous salary adjustments and cost of living adjustments that employers offered to their employees to counter rising inflation,” highlighted ZIMRA.