Zimbabwe has set its sight on raising revenue from the current US$4 billion to US$10 billion in the next few years through strengthening domestic resource mobilisation efforts, plugging leakages and enhancing production across all sectors among other measures.
The country’s static budget pegged at around US$4 billion and an unsustainable budget deficit has deprived Zimbabwe of the much needed transformative prosperity.
The just concluded 2018 pre-budget seminar saw participants highlighting the potential of the country to have a double digit budget of at least US$10 billion.
Finance and Economic Development Parliamentary Portfolio Committee Chairperson Cde David Chapfika is convinced that a US$10 billion budget remains a possibility and can be realised if the country strengthens the domestic resource mobilisation efforts, plug leakages, lure Diaspora remittances and enhance production.
Among some of the recommendations to boost collections, treasury has been encouraged to broaden the tax base by tapping into the informal sector, enhancing parastatals contribution to fiscus, increasing fiscal space by boosting production across all sectors and fiscal consolidation.
Finance and Economic Development Minister Dr Ignatius Chombo applauded parliamentarians’ recommendations aimed at enhancing revenue inflows, adding that on its part treasury will seek to boost inflows through widening of the tax base and automation of revenue collection systems.
Revenue projection for 2018 is set at US$4 billion with the major contributors being VAT, excise duty and PAYE.
The projected US$4 billion comprises tax revenue of US$3.763 billion and non-tax revenue of US$237 million.
Zimbabwe is estimated to be losing potential revenue of around US$3 billion per annum through illicit outflows with the mining sector identified as the major conduit.
Plugging the leakages is expected to boost revenue collections.