The Zimbabwe Revenue Authority (Zimra) netted ZWL$ 13.88 billion in tax collections during the first three months of 2020 and remains optimistic of prospects to meet the full year target of around ZWL$ 57.6 billion.
At its annual general meeting held today, Zimra commissioner general, Faith Mazani said the tax collector managed a 10.42 percent revenue collection surplus, surpassing the first quarter target of ZWL$ 12.27 billion.
Despite the disruptions caused by covid-19 pandemic, collection figures remained resilient as of the 31st of May, reaching ZWL$22.49 billion, 6.41 percent above the target of ZWL$21.13 billion.
The authority has managed to widen the tax bracket in recent years to replenish narrowing traditional tax avenues by introducing the unpopular 2 percent inter-mediated money transfer tax but the Covid-19 pandemic has postured a re-think into how Zimra ought to conduct its operations going forward.
“Zimra will require more investment in ICT development and business process re-engineering,” Mazani said.
Last year, the authority registered 21 333 new taxpayers, constituting 14 percent of the 172 497 active taxpayers as at 31 December 2019.
Excise duty remained the biggest revenue line constituting 17.76 percent of total tax heads with VAT on imports contributing 12.91 percent as the country continues to heavily rely on import products.
The value of imported goods in 2019 was ZWL$43.51 billion (541% nominal growth from 2018) while the value of exported goods totaled ZWL$39.54 billion (846% nominal growth).
Though the country had a negative trade balance of US$3.97 billion, exports grew more than the imports.