HARARE: 6 JULY 2016

Preliminary revenue performance figures released by the Zimbabwe Revenue Authority (ZIMRA) recently show that its initiatives to improve operational efficiency, fight corruption and enhance enforcement efforts are bearing fruit.

Gross revenue collections for the second quarter grew to $866.96 million from the $781.99 million collected in the first quarter. The gross collections were three per cent below the target of $892.88 million. This compares favourably with the first quarter revenue performance where gross collections were nine per cent below target.

On the other hand, net collections were eight per cent below target after processing refunds amounting to $41.6 million. This was a major improvement from the preceding quarter where net collections were 16 per cent below target. There was also a 31 per cent reduction in refunds from the $61.32 million processed in the second quarter of 2015.

Real-time connection of fiscal gadgets by ZIMRA is making it increasingly difficult for taxpayers to defraud Government through Value Added Tax (VAT) fraud. There has, thus, been an improvement in compliance levels, declaration of correct returns and payment of revenue. This has seen VAT on Local Sales for the period under review growing by over three per cent from $187.89 million collected in the first quarter to $194.62 million.

The second quarter saw the Revenue Authority enhancing its enforcement strategies to curb transit fraud. For example, three fuel tankers were recently seized in Karoi after the drivers offloaded fuel that was declared as being in transit to Zambia and filled the tankers with water. The drivers of the tankers are on the run and the Zimbabwe Republic Police is helping with the investigations.