The ZIMBABWE Revenue Authority (Zimra) recorded Z$161 billion in gross revenue for the fourth quarter ended December 31, 2021, 48.9% above target.
Despite inflationary pressures, the country’s monthly revenue has remained on a positive trajectory, having recorded significant growth since 2020 in response to the government’s prudent economic policies and revenue mobilization strategies pursued by Zimra.
In a revenue performance report for the period released yesterday, Zimra’s Vice Chairman of the Board, Ms. Josephine Matambo, said that 2021 ended on a high note in terms of revenue collection. revenues, as the country surpassed its set target.
According to the report, corporate tax head leads in terms of contributions at 20.18%, followed by personal tax at 17%, local sales VAT at 14.4%, excise duty at 12.4%, tax on intermediate fund transfers (IMMT) at 10.48%, VAT. on imports 9.3 percent and customs duties 5.8 percent.
The positive gains were made despite the greater adversity posed by the Covid-19 pandemic, which continued to negatively affect business operations as well as loss of life.
“Gross collections for the fourth quarter amounted to Z$161.08 billion, against a target of Z$108.17 billion (48.91% above target),” Ms Matambo said. .
“The authority issued refunds of Z$3.90 billion during the quarter under review.
“Net revenue collected in the fourth quarter increased by 71.77% in nominal terms from the ZW 91.51 billion collected during the same period in 2020.
“After adjusting for inflation, net revenues increased 8.81% in the fourth quarter of 2021 compared to the same period in 2020.”
Ms. Matambo said the corporate tax increase was driven by timely reminders to taxpayers and better capacity utilization in the manufacturing sector, which led to increased profitability.
She said the adoption and implementation of electronic cargo tracking system has been a game-changer in the excise duty segment as it has curbed fuel smuggling, which has been detrimental to the country of potential revenue.
Ms. Matambo said the VAT on local sales exceeded the target in net and gross terms thanks to Zimra’s media campaigns which educate the nation on taxation and paying taxes in the currency used in commerce.
Customs duties and VAT on imports were mainly entrenched in various industries that continued to import essential equipment and materials for use in production processes, which improved trade tax collections.
This saw the import tax base increase by 74.37% from Z$65.08 billion in the fourth quarter of 20202 to Z$113.47 billion in the fourth quarter of 2021, Ms Matambo said.
She said the IMMT revenue leader grew by 10.48% on the growth of digital transactions due to the non-availability of sufficient liquidity to meet the transaction needs of businesses and individuals.