• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Zim fails to meet revenue targets

Jul 19 2013 16:41
Malcom Sharara, Fin24’s correspondent in Zimbabwe
Harare - The Zimbabwean economy is at a standstill, with the country failing to meet targeted revenue collections for the first half of the year.

According to a statement released by the Zimbabwe Revenue Authority (Zimra), net collections for the first half were US$1.66bn against a target of $1.67bn.

Zimra said several economic setbacks had consequently led to shrinkage of the revenue base, resulting in the marginal failure to meet set targets.

The Revenue Collection Agency said retrenchments, scaling down of operations and company closures were some of the major challenges that had affected revenue collection.

Zimbabwe is now more of a consumer-based economy, with value added tax contributing the bulk of the country’s revenue at $517m. while companies contribute only $185m in company tax.

The contribution from company tax had a 10% negative variance. Zimra said the performance was negatively affected by the unavailability of affordable long-term as well as working capital to finance operations.

Many companies in the country are operating at below 50% capacity.

Mining royalties contributed only $81.1m, with Zimra saying the depressed performance of the revenue head was mainly due to the softening of international mineral prices, especially gold and diamonds.

 - Fin24

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

malcom sharara  |  zimbabwe  |  africa economy


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote