The Zimbabwe Revenue Authority (ZIMRA) surpassed by 36.84% its target for cumulative net revenue collections for the first half of the year, owing to intensified compliance strategies.
The cumulative net revenue collections were $491.49 billion up from an initial target of $359.16 billion for the first half and rose about 84% from $195.17 billion at the end of the comparative 2021 period.
In its newly released annual report, seen by NewsDay, ZIMRA said due to this performance it is expected to surpass its net revenue collection target of $809.4 billion by year-end. Read the statement:
The authority started the year 2022 on a positive note with the first half (H1: 01 January to 30 June 2022) cumulative net revenue collections of $491,49 billion against a target of $359,16 billion (36,84% above target). The 2022 annual revenue target of $809,40 billion is likely to be reviewed upwards in the second half of 2022.
Going forward, the authority expects to collect net revenue in excess of $951 billion, supported by intensified implementation of various compliance strategies to ensure timely and accurate tax remittances from different taxpayer segments. Real revenue growth is anticipated to exceed 10% supported by the improving manufacturing sector capacity utilisation and the anticipated mining sector growth in which the industry is expected to meet the US$12 billion-dollar target by 2023.
ZIMRA added that infrastructure developments, particularly, the completion of part of the Beitbridge- Chirundu Highway that links Zimbabwe to the North-South Corridor are expected to play a huge role.
The taxman added that inflation and exchange rate depreciation will also result in higher nominal revenue growth since the depreciating local currency against the United States dollar results in ZIMRA collecting higher taxes.