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ZWL$7 trillion in revenue collected in the first quarter of the year

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ZWL$7 trillion in revenue collected in the first quarter of the year

Story by Stanley James, Business Editor

THE Government’s revenue collections are on an upward trend after surpassing seven trillion Zimbabwe Dollars in the first quarter of the year.
The increase in revenue collections was driven by the implementation of a digital Tax and Revenue Management System aimed at stamping out tax evasion.

A recent treasury report reveals that revenue collections in the first quarter were dominated by Value Added Tax, followed by Paye As You Earn, Corporate Tax, Excise Duty and Mining Royalties.

As the government pursues domestic resource mobilisation, funds generated during the first three months of the year will be channelled towards national capital projects.

With the new digitalised Tax and Revenue Management System now fully operational, the Executive Dean of the Faculty of Commerce at the Bindura University of Science Education, Dr Zachary Tambudzai, believes the new system will further boost revenue collections.

“It is an issue that is very critical because in any normal circumstances revenue collection should be used to anchor growth taking into account the need for the Government to ease domestic borrowings.

“The latest tax collection mechanism is key in unlocking the value to the state however given the Elnino-induced drought and softening global prices for commodities indeed the need to stamp out leakages become imperative otherwise this is an issue that all concerted parties should focus on ensuring that adequate funding is generated to sustain the economy,” said Dr Stanley James.

Total revenues for 2024 are estimated at over Zwl$53 trillion and account for 18,3 percent of the country’s Gross Domestic Product.