Mining revenue surpasses target by over 1% in 2022
The collection of revenue by the Zimbabwe Revenue Authority (ZIMRA) for the mining industry surpassed projections by 1.15 per cent in 2022, ZIMRA annual report for 2022 reveals.
Rudairo Mapuranga
However, the mining industry only accounted for 3 per cent of the total tax collected by the revenue collection agent. ZIMRA said that collections were negatively affected by poor international commodity prices.
“The revenue head surpassed the target by 1.15%. Mining Royalties accounted for 3% of total revenue in 2022 and there was not much change from its contribution in 2021. Collections were negatively affected by poor international commodity prices,” ZIMRA said in part.
The following are some of the revenue heads which are administered by ZIMRA:
According to ZIMRA individual revenue head surpassed its target by 4245%, contributing 19% to total revenue up from 17% in 2021. With performance driven by periodical salary adjustments by some employers in line with the cost of living.
The revenue collection authority said, Collections from Corporate Income Tax were 5.09% below target and contributed 15% to total revenue down from 2042% in 2021. The revenue had failed to meet its target despite the Authority’s Intensifying various revenue-enhancing activities such as sector-based audits and door-to-door visits to harness revenue from various sectors.
Value Added Tax beat the target by 28.37% and contributed 25% to annual revenue. In 2021 VAT contributed the same proportion to total revenue Performance of VAT was positively impacted by, Enforcement activities, The use of Fisca devices and increased value of consumed Vatable products and meticulous verification of VAT refunds before payment.
The 2022 annual contribution to total revenue for Customs Duty was 8% and this was an increase from 7% in 2021. Net collections under the revenue head were 44.92% above the target. Key contributing commodities to Customs revenue in 2022 were motor vehicles, parts of machinery, liquefied butanes and tyres. Enforcement activities such as risk-based post-clearance audits and anti-smuggling initiatives impacted positively the revenue head’s performance.
Intermediated Money Transfer Tax (IMTT) revenue head surpassed the target by 25.64% during the year and collections were 9% of total revenue down from 9.64% in 202. IMTT’s performance is a reflection of the increase in the number and value of transactions conducted electronically IMTT audits conducted during the year, also yielded significant amounts of revenue
Other Taxes contributed 6% to total revenue having surpassed its target by 1049%.