The Zambia Revenue Authority – ZRA has missed its April 2024 tax collection target by a notable 11%, perhaps depicting the tough economic conditions existing in the Zambian economy. ZRA collected a total of K12 billion (abut US$460 million) against a set target of K13.6 billion for the month of April 2024, with this shortfall putting further pressure on the treasury.
According to published April 2024 performance results seen by the Zambian Business Times – ZBT, the governments revenue collection authority had failed to meet its target due to hefty tax refunds of K1.3 billion paid out mostly to mining firms. The authority further under performed under company tax collections by 36%, collecting K3.5 billion, against a target of K5.5 billion.
ZRA collected K1 billion for the month of April 2024 under mining company tax, which was 64% below target of about K3 billion. Most areas under inland revenue underperformed as tax paying companies, businesses and individuals struggled to cope with rising inflation, raising cost of doing business as well as a depreciating local currency – Kwacha.
However, the face saver was the performance under customs division which posted a 17% performance above the set collections target. The ZRA customs division exceeded the minerals concentrates export duty target of K3.7 million by about 60%. Other areas of better performance were fuel import levy which delivered revenues of K138 million which was about 40% above target.
Diversification of the Zambian economy remains a strategic goal as revenue generation as well as tax and non tax revenues have tended to rely heavily on the copper mining industry and its cottage industry. Other key economic sectors like agriculture remain marginal as their contribution to tax and non tax revenue as not grown enough to offer an alternative and counter cyclical economic engine.
