Lockdown forces drop in revenue collection

GOVERNMENT which in April collected about ZWL$3,82 billion, missed its revenue collection target by 11 percent and it attributed this to less trading activity on the market due to Covid-19 lockdown measures.

Treasury said: “Total revenue collection for the month of April 2020 amounted to ZWL$3,818 billion against a target of ZWL$4,11 billion resulting in negative variance of ZWL$493,260 million (11 percent).”

It said taxes on income contributed ZWL$1,068 billlion against a target of ZWL$745,38 million giving a positive variance of ZWL$323,094 million.

Taxes on goods and services contributed ZWL$2,674 billion against a target of ZWL$3,483 billion giving a negative variance of ZWL$808,355 million.

This was mainly due to less trading activities in the market due to the national lockdown.

Customs duty had a negative variance of ZWL$279,384 million while Value Added Tax recorded a negative variance of ZWL$532,718 million, and excise duty also recorded a negative variance of ZWL$381,503 million.

“Taxes on financial and capital transactions recorded a positive variance of ZWL$197,385 million. This is attributed to Intermediated Money Transfer Tax, which contributed ZWL$786,88 million against a target of ZWL$590 million due to an increase in use of mobile money transfers during the lockdown,” it said.

Non-tax revenue recorded a negative variance of ZWL$7,954 million, which was 10 percent below target.

The variance is attributed to property income, which did not meet the target by ZWL$25,741 million.

Total expenditure for the month of April amounted to ZWL$1,720 billion against a target of ZWL$1,194 billion giving a variance of ZWL$526,204 million reflecting a significant 44 percent increase.

“The variance was because of payments for backdated increments for pensioners and civil servants.

“Expenses on the use of goods and services amounted to ZWL$713,517 million against a target of ZWL $660,896 million giving a variance of ZWL$52,621 million,” said Treasury.

Major contributors are training expenses of ZWL$157,093 million, maintenance ZWL$106,465 million, rental and other service charges of ZWL$100,774 million and institutional provisions allocated ZWL$95,833 million. —chronicleoc.zw