Zimbabwe: More taxes collected to fund development
A total of $469.21 billion was collected in taxes and duties last year against a target of $387.4 billion, ensuring the government has the money to accelerate development.
Gross inflows for the fourth quarter were $161.08 billion against a target of $108.17 billion, 48.91% above target, reports Zimra Vice President Ms. Josephine Matambo, in her latest earnings report for the fourth quarter, and therefore for the whole year, published yesterday.
“2021 ended on a high note in terms of revenue collection, as Zimra exceeded revenue targets despite a number of challenges faced by the revenue authority and the nation as a whole. greatest adversity has been the continuing Covid-19 pandemic which has affected business operations and resulted in the deaths of fellow citizens and some Zimbabwe Revenue Authority staff,” Ms Matambo said.
“The authority collected net revenues of $469.21 billion against a target of $387.4 billion for the year ending December 31, 2021 and that translated to 21.12% above goal,” she said.
Zimra collects excise duty, value added tax, customs duty, income tax, corporate tax and intermediate funds transfer tax and all of them earned more in the fourth quarter in terms of nominal compared to the same period in 2020.
“This is largely attributable to the inflationary pressures the country has experienced for most of 2021.”
The sums declared corresponded to what was actually paid into Zimra’s bank accounts. Late payments and what people are trying to avoid are not included.
Excise duty was a major contributor to revenue in the fourth quarter after accounting for 12.4% of total revenue, while VAT on local sales constituted 14.42%, mainly due to the blitz conducted by Zimra across all media platforms.
Regarding customs duties and VAT on imports, the import tax base increased by 74.37%, from $65.08 billion in the fourth quarter of 2020 to $113.47 billion in fourth quarter of last year.
IMTT contributed 10.48% to quarterly revenue.
“The non-availability of adequate liquidity to meet the transaction needs of businesses and individuals has led to increased demand for electronic transactions, which has boosted IMTT collections,” Ms. Matambo said.
She also said that measures to improve the ease of doing business such as the modernization of the Beitbridge border post, which is the country’s largest and busiest port of entry, the application of the pre-clearance and the imposition of penalties for non-compliance and deployment. additional staff during peak hours, helped Zimra increase its revenue.
Revenue enhancement measures have also been implemented, such as advertising blitz, effective debt management, and risk-based audits, among others.
Major strategic projects underway include border surveillance through the acquisition of drones which are already being acquired to curb rampant smuggling around entry points, smuggling which results in large sums in duties, most of which being lost when goods are transported on the Limpopo River. by wading porters or transported or trucked on new roads through the Eastern Highlands.
Ms Matambo said Zimra is making progress with inland dry ports in a bid to decongest border crossings. These allow the goods to be kept in bond and to be cleared if necessary.
The Makuti dry port project is now at the design stage while other sites include Mutare, Bulawayo and Masvingo.
“Zimra is expecting a productive 2022 as most of its projects are now in the implementation stage, the time-consuming project initiation stages have passed for most projects,” Ms. Matambo said.