WASHINGTON DC —
Zimbabwe misses third-quarter budget revenue targets as economic growth slows and mineral royalties diminish, indicating a tough task ahead for the Zanu-PF government in turning around the economy.
In a statement, the Zimbabwe Revenue Authority (ZIMRA) said it collected $897 million between July and September against a target of $905 million.
It attributed the shortfall to company closures and firms that are scaling down due to lack of capital to revamp operations.
ZIMRA chairman Stanford Moyo said the economy continued to face challenges such as erratic power supplies, liquidity constraints, depressed industrial capacity, among other issues.
Moyo said company tax collections were 3 percent short of the target and mining royalties were 39 percent below projections.
He blamed this on fluctuating mineral prices and failure by some diamond mines under western sanctions to sell their gems.
Moyo further noted that individual tax collections rose 23 percent after ZIMRA extended its net. But the closure of companies is expected to have a huge impact on such taxes.
Economist Prosper Chitambara of the Labour and Economic Development Research Institute of Zimbabwe said the low revenue collections are worrying.
The country’s economy is expected to grow by 3.4 percent this year, down from earlier projections of 5 percent. Finance Minister Patrick Chinamasa is set to present the country’s annual budget next month.