Individual tax underperformed by 6 %, against the target of $320 million. This was largely due to the fact that the 2012 budget reviewed the tax-free threshold upwards from $225 to $250 per month.
Corporate tax brought in $178 million – a 13% surplus. The overwhelming performance of corporate tax is largely attributed to a gradual improvement in local industry capacity utilisation.
Last year it rose to 57.2 %, from 43.7 %. During 2012 it is expected to rise to 60 %.
Customs duty also underperformed by $19.68 million, missing the target of $189.98 million. Zimra attributed this to improvements in local industry, reducing reliance on imports.
But Biti argued that imports continued to rise, recording $2 billion by April 2012, implying that customs duty does not move commensurate with actual trade volumes. Imports are projected to close the year at $8 billion.
The underperformance of this revenue head could point to other factors like smuggling of goods, undervaluing of declared goods and faking of certificates of origin, at the border.
Excise duty performed well above its target of $157.5 million, rising to $175.4 million – largely attributed to increases in disposable incomes which led to increased consumption of excisable commodities and increased demand for fuel due.
Post published in: Business