Zimbabwe Surpasses Revenue Projections for 2022

Zimbabwe Surpasses Revenue Projections for 2022
  • The year 2022 was a great one for the Zimbabwe Revenue Authority as the tax authority surpassed its 2022 annual revenue target.

As the quest for more taxes hits the front burner, Zimbabwe surpasses revenue projections for 2022. According to the Zimbabwe Revenue Authority, this is enabled by the deployment of certain collection strategies that were put in place.

The tax body was able to generate a total net revenue of $2 trillion in 2022 against its target of $1.6 trillion. This also translates to Zimra surpassing its fourth-quarter projection by 34.05%.

Zimbabwe Surpasses Revenue Projections for 2022: Breakdown

According to Zimra, Individuals tax accounted for the largest portion of the revenue generated, as it forms 18.88% of the total figure.

Compared to collections for Q4 2021, tax from individuals surpassed the set target by 70.92% and revenue growth was 76.69% in real terms.

This was a result of salary adjustments, partial payments, bonus payments, and full payments of salaries in foreign currency.

Compared to figures from Q4 2021, net collections from Value Added Tax increased by 59.99% in real terms.

According to Zimra, thanks to increased foreign currency revenue from companies, collections from companies rose by 10.05% in real terms as compared to Q4 2021.

Following the growth in imports which rose by 508.27% from Q4 2021, the custom and VAT on imports tax heads exceeded their targets by 39.46% and 52.51% respectively.

The tax authority cleared exports that amounted to $1.28 trillion, a figure that signifies substantial growth compared to the amount of 192.56 billion that was collected in 2021.

Zimra plans to generate higher net revenue in line with the projected economic growth of 3.8%.

Beitbridge Border Improved To Ease Entry Into And Exit From Zimbabwe

In 2022, the Zimbabwean government was able to fortify the Beitbridge border to enhance the flow of goods and people in and out of the country.

Here are some of the fortifications:

To ease the clearance of goods both on their way into and out of the country, the Beitbridge border post was updated new commercial and passenger terminals were empowered.

In December 2022, a new state-of-the-art scanner was delivered to the Beitbridge border to help improve efficiency at the border.

There were also talks to acquire drones to be placed at borders to help expose and prevent smuggling through the border.

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