Story by Stanley James, Business Editor
Zimbabwe’s developmental agenda has received a major boost in the wake of revelations that authorities will collect over US$7 billion in revenue this year after surpassing 2024 targets.
Giving an update on revenue collections for the just ended year, Zimbabwe Revenue Authority (ZIMRA) Commissioner General Ms Regina Chinamasa disclosed that the institution surpassed its targets after collecting over US$6 billion.
She revealed that in line with facilitating increased funding for government projects, the public entity has this year set a target of over US$7 billion.
Value Added Tax, corporate tax, custom duties, Pay As You Earn and mining royalties are some of the tax heads that are expected to generate revenue to sustain capital projects and employment costs for the state.
“Zimbabwe has what it takes in terms of resource mobilisation and revenue generation as the authority that is mandated with the duty to raise money on behalf the state. We have also seen it necessary to forge ahead with using all the relevant instruments to collect more revenues. Going ahead, the focus is also working with the tax payers to generate more money,” Ms Chinamasa.
The anticipated revenue collection systems are also expected to help in Zimbabwe’s domestic resource mobilisation drive as statistics indicate that development partner support remains subdued despite accounting for at least 20% of the national budget.
“It is our mandate to see that Government’s projects get the best out of the prevailing resources, so the thrust is on maintaining the current trajectory with focus being what are the key deliverables to sustain the growth trend in revenue inflows. As for now, it is also incumbent upon us to forge ahead with the current initiatives and focus on long term measures to boost the earnings. The resources are available so the key thrust is to maintain the growth trend and boost inflows,”
Under Zimbabwe’s devolution agenda, treasury has also committed funds from the revenue inflows towards infrastructure developments across the country.
The anticipated growth in revenue collections is also expected to be driven by compliance from industry and commerce to pay taxes, removing revenue leakages and improved economic conditions, riding on a favourable summer cropping season.
