ZIMRA acknowledges support from Government, clients

“The Government of the Republic of Zimbabwe, through the Ministry of Finance, rendered valuable support to ZIMRA throughout the year.” This was said by the Board Chairman of the Zimbabwe Revenue Authority, Dr Gibson M Mandishona, in his 2009 revenue performance report.

In the year in question, ZIMRA significantly improved revenue collection, which Dr Mandishona attributed to efforts made by the All Inclusive Government to restore viability in the economy, coupled with the hard work by the Zimbabwe Revenue Authority. The report stated that, cumulative collections for the 2009 stood at US$988.5 million against a target of US$1.05 billion, resulting in a negative variance of 6%. The percentage contributions to total revenue by quarter were 5%, 26%, 27% and 42% for the first, second, third and fourth quarters respectively. Dr Mandishona pointed out that Corporate Tax was the greatest contributor to revenue after accounting for 54% while Value Tax (VAT) performed dismally owing to suppressed aggregate demand.

The ZIMRA Board Chairman highlighted some of the challenges in revenue collection which the Authority faced throughout the year. For instance, most businesses were still adapting to the payment of duties and taxes in foreign currency especially in the first quarter. Low productive capacity, loss of jobs, shortages of foreign currency and liquidity crunch were other challenges faced during the year.

“Although some challenges are still prevailing in the economy,” stated Dr Mandishona, “the year 2010 promises to be a better year after more than a decade of economic slump”. He acknowledged that with the Inclusive Government in place and the policy measures expected to come on board, ZIMRA will be able to collect revenue in a stable political and economic environment, from increasingly compliant and capable clients.

Besides collecting the much needed revenue for the State, the Zimbabwe Revenue Authority managed, in 2009, to intensify information and communication technological advancement by upgrading the AYSCUDA++ to ASYCUDA World, a more interactive and integrated Customs environment software.

In addition, the Authority continued to play a pivotal role in the regional integration process at both the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) regional economic blocks. The first ever One Stop Border Post in Africa was commissioned at Chirundu, the border between Zimbabwe and Zambia.