Zimbabwe Revenue Authority (ZIMRA) has surpassed the January 2018 revenue target after gross collections amounted to US$350.97 million against a target of US$325.05 million, while net collections stood at US$336.99 million.
According to the group financial report, the positive performance was mainly spurred by Value Added Tax (VAT) on Local Sales, Corporate Income Tax and Individual Tax.
“Net revenue collections for January 2018, which were 3.67 percent above target, grew by 28.56 percent from the US$262.13 million that was collected during the same period last year.
“The positive performance was mainly spurred by Value Added Tax (VAT) on Local Sales, Corporate Income Tax and Individual Tax. All the revenue heads, except for Customs Duty, performed above January 2017 levels.
“Gross collections from the VAT on Local Sales for January 2018 amounted to US$106.33 million and after processing refunds amounting to US$13.63 million, the net collections were at US$93.10 million,” reads the report.
ZIMRA added that corporate income tax contributed US$19.70 million to total revenue for the month, against a target of US$15.20 million.
“Corporate Income Tax contributed US$19.70 million to total revenue for the month, against a target of US$15.20 million. Collections under Corporate Income Tax, which were 29.58 percent above target, increased by 46.20 percent from the US$13.47 million that was collected in January 2017.
“The improvements in revenue collection are mainly a result of intensified taxpayer education programmes that are meant to promote voluntary tax compliance; automation and modernisation initiatives being carried out by the Authority, such as fiscalisation and the Electronic Cargo Tracking System; as well as the increased use of electronic payments, which leave an audit trail.
“ZIMRA’s tenacious fight against underhand dealings such as transit fraud, corruption, smuggling and tax evasion have also contributed to the sterling revenue performance,” they said.
