The government has realised $516 million from tax collections in January, according to official statistics from the Zimbabwe Revenue Authority.       

The government’s capacity to fund social services, capital projects, employment costs and revival of productive sectors has also received a boost after ZIMRA surpassed the target of $456 million.

While value added tax (VAT) on consumption is dominating, followed by excise duty, pay as you earn (PAYE) and custom duties, among others, a tax expert Mr Simon Gwenzi said if maintained, the current trend will see the government achieving set macro economic targets.

“It might be early but indicators are pointing towards the government achieving targets and surpassing expectations,” he said.                

Another tax expert, Mr Marvellous Tapera said there is need to ensure that the existing tax systems are also gradually reviewed to sustain the needs of industry and commerce.

“The need to review the structures is highly critical in the long term for the benefit of the economy,” he said.

Zimbabwe’s revenue collections are this year expected to grow by 32 percent to $6,2 billion