The Zimbabwe Revenue Authority (ZIMRA) is expecting to collect ZWL$18 billion from taxes this year, compared to $5 billion last year on the back of a widening income collection base.
The revenue collector’s Commissioner General, Mrs Faith Mazani said the fiscal measures being put in place by the treasury have raised optimism of improvement in income inflows next year.
“The challenge is on how we can balance the books otherwise we are however confident of a rise in revenues,” she said.
While the government is expected to forego billions of dollars through tax relief packages and subsidies, an industrialist, Mr Thomas Erumada said the tax credits will boost production and increase consumer spending, thereby having a net effect on revenue inflows.
“The tax credits are really necessary as they have the potential of increasing income or revenue generation,” said Mr Erumada.
Treasury’s revenue collection strategy is primarily aimed at boosting production and creating jobs in line with the government’s vision of attaining an upper-middle-income economy by 2030.