The Sunday News
Munyaradzi Musiiwa, Midlands Correspondent
Zimbabwe Revenue Authority (ZIMRA) has collected more than ZWL$20 billion in revenue during the second quarter of the year surpassing its target by more than 42 percent.
In a revenue performance report for the second quarter, Zimra vice-board chairperson Ms Josephine Matambo said the revenue authority maintained a positive trajectory in nominal terms despite the adverse operating environment that has been exacerbated by the Covid-19 pandemic.
“Net revenue collections during the second quarter of 2020 amounted to ZWL$20.11 billion against a target of ZWL$14.09 billion. This translated to a positive variance of 42.75 percent. Net revenue collections grew by 542.24 percent in nominal terms from ZWL$3.13 billion that was realized in the same period in 2019. While all revenue heads registered positive growth in nominal terms, in real terms there was no growth. The second quarter was from April to June.
“Revenue collections maintained a positive trajectory in nominal terms despite the adverse operating environment that has been exacerbated by the Covid-19 pandemic. The second quarter of 2020 was characterized by a widening gap between official and parallel market exchange rates and rising inflation,” she said.
Ms Matambo said the authority remains committed to plugging revenue leakages through intensified anti-smuggling efforts and increased risk based audits.
She said Zimra was also creating conducive environment for the ease of doing business in line with Government’s 2030 vision of making Zimbabwe a middle-income economy.
“All revenue heads performed above 2019 levels in nominal terms because of the hyperinflationary environment that the country is experiencing. The revenue enhancement strategies that the Authority is implementing are expected to improve revenue collections in real terms as the benefits begin to manifest.
Such strategies include effective debt management, risk based audits, anti-smuggling activities, post clearance audits, and improved business processes. During the second quarter of 2020, these strategies were curtailed by the Covid-19 pandemic restrictions.
To improve the ease of doing business, Zimra is simplifying its business processes. A number of modules under the Customs modernisation program were completed in the quarter, and the procurement preparations are underway for the modern Tax Administration System (TaRMS) for the Domestic Taxes administration,” she said.
