The Zimbabwe Revenue Authority (ZIMRA), today (2nd September 2021) held a virtual AGM were it announced that the revenue collector met its annual net collection target and recorded an above target collection of ZWL$171.9 billion for the 2020 period.
The Authority managed to collect annual net revenue of ZWL$181.96 billion against the target of ZWL$171.9 billion representing 5.85% above target. This result presented a real growth of 74.93% compared to 2019 collections after adjusting for inflation.
The Authority’s strategic drive to widen the tax base through registration of new taxpayers resulted in an additional 21, 623 new clients in 2020. These new taxpayers contributed ZWL$558.2 million against a target of $218.7 million.
Foreign currency collections for 2020 amounted to USD$787.85 million, the substantial collections realised after the RBZ authorised local trade using free funds by individuals and corporates through Statutory Instrument 85 of 2020 to mitigate the effects of the COVID-19 Pandemic.
“Treasury appreciates ongoing efforts by the Authority to meet set targets, it is important to assess such performance against the maximum potential to collect revenues, in particular, considering the untapped potential concealed in various policies that still require full implementation.
While we celebrate the positive revenue performance, it, thus, remains crucial for the Revenue Authority to swiftly address policy implementation bottlenecks, particularly with regards to the Fiscalisation Programme and the attendant VAT refunds mechanism,” said Permanent Secretary in the Ministry of Finance and Economic Development, Mr. George Guvamatanga, who was delivering a speech on behalf of the Minister of Finance, Prof Mthuli Ncube.
He added that treasury noted the resilience demonstrated by ZIMRA in the collection of revenue, notwithstanding the challenges associated with the COVID-19 Pandemic stating that revenue collections continue to benefit from the self-assessment system, buttressed by the numerous revenue collection agents that withhold specified taxes at source.
The Revenue Authority was challenged by the Minister to enhance the Information Technology Platform, which is key in electronically connecting operators, agents and general taxpayers to facilitate seamless and uninterrupted connectivity, thereby guaranteeing prompt payment of taxes, regardless of geographical location of taxpayers.
In addition, the Authority was called upon to harness revenue that remains concealed in operators that have not yet fully embraced the Fiscalisation Program. It was also noted that the majority of operators have not fully fiscalised their operations, including, in particular, ensuring that fiscalised devices are linked to the ZIMRA server.
Six main sectors contributed 81% of the revenue. These were Mining and Quarrying, Finance and Insurance, Manufacturing, Wholesale and Retail, Information and Communication and Agriculture, Forestry and Fishing.