Money markets: Treasury still to finalise new 2020 revenue target

28 Jun, 2020 - 00:06 0 Views
Money markets: Treasury still to finalise new 2020 revenue target

The Sunday News

TREASURY is yet to determine revenue targets for 2020, although a provisional target of $57,6 billion is being used.
Zimbabwe Revenue Authority (Zimra) Commissioner General Faith Mazani, said it is in line to meet the provisional target, while awaiting the new target that should be announced in the Mid-term Fiscal Policy Statement.

“Net revenue target for 2020 is to be agreed with the Ministry of Finance and Economic Development, but working with $57,6 billion. Current trend is indicating that the Authority will meet the target,” she said during the Authority’s annual general meeting recently.

“Net revenue is directly co-related to Gross Domestic Product (GDP).

“The new Zimra net revenue target will be announced as part of the Ministry of Finance and Economic Development’s Mid-Term budget review.”

Last year, Zimra collected net revenue of $23,19 billion against a target of $18,60 billion, a positive variance of 24,65 percent.

The net revenue to GDP ratio for 2019 stood at 18 percent against a regional average ratio of 15 percent.

There is general expectation that revenue collections this year could be seriously affected by the coronavirus (Covid-19) pandemic, which forced the Government to impose a national lockdown at the end of March to try and curb the spread of the highly infectious virus.

The All Share index closed the week higher at 1,788.75 points after adding 27.84 points (1,58 percent).

Natfoods added $5,8988 to close at $51,1488, SeedCo International Limited rose by $4,3831 to $29,9500 and Lafarge was $1,0000 stronger at $6,0400. Delta recovered $0,8276 to $24,8703 and NMB traded $0,6575 higher at $4,1575. Gains were offset by losses in Innscor which lost $0,4527 to $22,0463, Afdis eased $0,3623 to $18,2377 and FBC Holdings was $0,3056 weaker at $14,7500. Cassava Smartech also decreased by $0,2162 to $8,4517 and Old Mutual Limited went further down by $0,1378 to end at $81,9906.

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