ZIMRA Says Company Tax Contributions Missed The Set Target In 2022 Q2
The Zimbabwe Revenue Authority (ZIMRA) says companies missed the target for the quarter by 17.8% due to depressed economic performance and the negative impact of the COVID-19 pandemic.
Companies are some of the major contributors to revenue to the national purse.
The tax collector got $43.654 billion from companies against a target of $53.092 billion.
In a revenue performance report for the second quarter which ended June 30 2022, ZIMRA acting Commissioner-General Regina Chinamasa said the authority would continue to enforce compliance to improve the performance of the revenue head. Said Chinamasa:
Companies missed the target by 17.78%. Most companies are still depressed and struggling to recover from the effects of the COVID-19 pandemic.
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Gross revenue collections for the quarter amounted to $332.26 billion against a set target of $193.75 billion, which translates to 71, 49% positive variance. Net collections were $316.81 billion after deducting refunds of $15.46 billion.
This gives a positive variance of 63.51% against the target.
In the same period last year, $106.64 billion was realised, showing that nominal and real net revenue collections grew by 197.09% and 23,83%, respectively.
Statistics from ZIMRA show that all other revenue streams besides that of companies surpassed the set targets in the second quarter.
The positive variance on Vat on local sales of 39,19% is attributed to high inflation which augmented the positive performance of this tax head.
Chinamasa also noted that contributions by individuals performed above expectation due to salary adjustments, cost of living adjustments and payment of salaries in foreign currency.
The Intermediated Money Transfer Tax surpassed the target by 102.54%, driven by electronic payment transactions which constitute over 90% of the total payments in the country.