Zimra meets Q1 revenue target

THE Zimbabwe Revenue Authority (Zimra) has reported a collection of $4 trillion in tax revenue so far this year, expressing confidence in meeting its quarterly target of $7 trillion by the end of the month.
This development comes as Zimbabwe’s resource mobilisation strategy is currently focused on the ordinary citizen due to low domestic output, continued foreign isolation, and limited credit availability.
Zimra’s Commissioner of Domestic Taxes, Misheck Govha, recently told The Financial Gazette that revenue will be bolstered by Quarterly Payment Dates (QPDs), a regulatory measure for the payment of corporate income tax on four dates during the current tax year.

“We are on track; we have $3 trillion to collect in March and we expect QPDs, value-added tax and other revenues besides customs revenues as well. We have additional revenue, which is QPDs, which is not normally generated each month. So, we should meet our target,” Govha stated.
The 2024 national budget introduced several clean-up changes aimed at closing revenue leakages facilitated by policy inconsistencies and gaps. Govha highlighted the success of the block management system in increasing the tax base, registrations, and additional revenues in both US dollars and Zimdollars.
The cooperation from informal traders has been commendable recently, and Govha hopes that this relationship will continue to provide a significant advantage in terms of revenue collection.
Zimra’s new domestic Tax and Revenue Management System (TaRMS), which is 80 percent complete, is expected to help integrate the informal sector into the tax net. Since the start of the year, 432 VAT-registered small and medium enterprises have voluntarily complied with tax laws.
Govha shared at the recent annual tax review breakfast meeting hosted by The Financial Gazette, “Their turnover is so high that some of them, with monthly turnovers of up to US$120 000, will be reclassified as medium and large clients.”
Meanwhile, smuggling has been a persistent issue at the country’s border post, but the tax authority has introduced drones to address this problem.
Zimra has set a target to collect $52 trillion in 2024. However, analysts warn that authorities continue to impose additional taxes, even as the cost of doing business and the cost of living are skyrocketing.
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