Industrial rebound to drive govt revenue

THE Zimbabwe Revenue Authority says real revenue growth this year is projected to grow by about 10% supported by the improving manufacturing sector capacity utilisation and the anticipated mining sector growth.

The tax agency’s head of corporate communications, Francis Chimanda told NewsDay Business in emailed responses that improvement in the country’s manufacturing sector capacity utilisation and the anticipated mining sector growth would drive up real revenue growth.

However, the manufacturing sector, which recorded a 56,5% growth in capacity utilisation last year, is expected to grow by 3,6% this year from an initial projection of 5,5%, according to Finance minister Mthuli Ncube.

The downgrade, Ncube said, was mainly due to high costs of production, attributable to rises in prices of imported raw materials and a poor agricultural season.

The mining sector, on the other hand, is expected to grow faster at 9,5% in 2022, largely driven by increased output in gold, platinum group metals, chrome, nickel, diamonds and coal, as well as record high international commodity prices and increased investments in the sector.

“Going forward, the authority expects to collect net revenue in excess of $951 billion (about US$2,08 billion), supported by intensified implementation of various compliance strategies to ensure timely and accurate tax remittances from different taxpayer segments,” Chimanda said.

“Real revenue growth is anticipated to exceed 10% supported by the improving manufacturing sector capacity utilisation and the anticipated mining sector growth in which the industry is expected to meet the US$12-billion-dollar target by 2023,” Chimanda noted.

He said improved efficiencies in Zimbabwe’s road network due to the revamp of the Harare-Beitbridge Highway would play a major role.

“Infrastructure development particularly the completion of part of the Beitbridge-Chirundu Highway that links Zimbabwe to the North South corridor is expected to play a huge role,” he said.

Ncube said the positive performance of tax revenue during the first half of the year was largely attributable to value added tax, personal income tax, excise and customs duties, and intermediated money transfer tax duty, and intermediated money transfer tax.-newsday