Revenue collections surpass target in the first quarter

By Stanley James, Business Editor

MORE than ZWL$173 billion was collected in taxes and duties during the first quarter of the year, with the government channelling the revenue towards developmental projects.

Zimbabwe continues to mobilise funds from domestic resources through taxes, with revenue collection for the first quarter going beyond Zimbabwe Revenue Authority (ZIMRA) targets.

The positive development was confirmed by ZIMRA Acting Commissioner General, Regina Chinamasa who also outlined the main thrust of revenue collection to sustain development and ensure more inflows during the year.

“Revenue performance has been on target mainly due to our thrust in focusing on transparency and accountability while ensuring we plug off loopholes and smuggling,” said Chinamasa.

For economists and tax experts, it is the ability to preserve the value of the revenue generated that will eventually result in more funds being fully utilised for set capital projects.

“The results are just pleasing but it is all up to the level of stability that will guarantee sustainability and ensure strong government coffers,” said Chris Mugaga, ZNCC Chief Executive Officer.

“The inflationary pressures however needed to be safeguarded to unlock value on revenue collections and ensure more is collected for the benefit of industry and commerce as well as government,” said Simbarashe Hamudi, a tax expert.

The key drivers of revenue collections for the period under review include individual taxes, value-added tax, excise duty, mining royalties and tobacco levy, among others.

A target of over ZWL$190 billion has been set for collection during the second quarter of the year.