A Guide to Zimbabwe Goverment Revenue

1. 1 Background The purpose of this tool and guide is to equip Legislators, Civil Society Organizations and other interested stakeholders to fully understand how public revenues are raised by the Government, so as to make an informed analysis and judgement on how the Government can transparently and efficiently collect and effectively deploy resources towards government programmes. It will equip the stakeholders with the necessary stamina to confront the relevant arms of Government charged with the management of public resources.

Government revenues are governed by the Public Finance Management Act (Chapter 22:19) whose object is to “secure transparency, accountability and sound management of the revenues, expenditures, assets and liabilities of any entity comprising ministries, corporate bodies and public entities, constitutional entities and statutory funds”. The Treasury (Ministry of Finance) is mandated in terms of section 6 of the Act to control and manage public resources, managing the Consolidated Revenue Fund, determining the manner in which public resources shall be accounted for.

Treasury can direct any relevant entity to collect on its behalf any monies due to the State. 1. 2 Enabling Legislations The Public Finance Management Act (Chapter 22:19) of 2009, gives overall authority to the Ministry of Finance to manage and control public resources. The Finance Bill (Act) gives authority for the collection and disbursement of government revenues, as determined each fiscal year, and has to be approved by Parliament after the presentation of the budget by the Minister of Finance.

The overall enabling legislation that covers every subsidiary legislation is enshrined in the Constitution of Zimbabwe Chapter XI (sections 101 – 106), stating the functions of the Consolidated Revenue Fund (CRF), the principal state purse. 1. 3 Tax Reforms The Ministry of Finance, Fiscus or Treasury relies on agencies and institutions to collect on its behalf all the revenues due to the Government of Zimbabwe. Prior to independence and up to 2001, the principal tax collection agencies were known as the Department of Taxes and the Department of Customs and Excise.

The Department of Taxes was charged with the collection of corporate tax, sales tax, personal income tax, capital gains tax, etc, while the department of Customs and Excise’s duty collected border taxes and the so-called “sin taxes” in the form of liquor and tobacco excise taxes. Economic reforms dictated by the IMF and the World Bank brought in a wave of reforms in the revenue collection capacities of state and its agencies. Aside from the introduction and implementation of user fees in services departments such as schools, clinics and hospitals, the reforms culminated

in the combination of the two key departments to form the Zimbabwe Revenue Authority (ZIMRA), headed by a Commissioner General. ZIMRA was established on 19 January 2001 as a successor organisation to the then Department of Taxes and the Department of Customs and Excise following the promulgation of the Revenue Authority Act on February 11, 2000. Among other reasons for this amalgamation were the world trends, desire to improve efficiency by reducing bottlenecks and duplication of roles.

This harmonized revenue collection agency worked at purging corruption particularly at border posts, by implementing a complete staff swapping, with most operatives in the taxes department re-trained and dispatched to borders posts and vice versa. This new set up achieved great strides in embracing tax reforms, such as the introduction of value added tax (VAT), which replaced sales tax charged on goods sold and imports in 2004.

Through Zimra’s advisory role to the Government of Zimbabwe on fiscal matters, various fiscal reforms aimed at broadening the tax base have been successfully introduced and these include Presumptive Tax, and Self Assessment of Income Tax. ZIMRA has grown at a tremendous pace and has put in place client-centric strategies for the convenience of the transacting public. In an effort to improve its operations, more stations (both permanent and temporary) have been opened nationwide.

New border posts have also been opened since 2001 and these include Mphoengs, Sango and Maitengwe while Chirundu is now a one stop border post under the auspices of the Common Market for Eastern and Southern Africa (COMESA). Operational hours at ports of entry/exit have also been increased and a case in point is Beitbridge Border Post which is now operational for 24 hours. The Authority recently introduced a fully functional Large Client Office (LCO) to administer large clients in a personalised way.

ZIMRA has put in place measures to thwart smuggling which is prejudicing the fiscus of revenue and posing health risks to our society. By adopting various strategies that include use of scanners, border patrols, post-importation audits, client awareness programmes, and cargo monitoring; among others, the Authority has made an imprint in fighting underhand dealings. Strides have so far been made in embracing information and communication technology as part of the Authority’s efforts to modernise Tax and Customs operations.

The introduction of ASYCUDA World and scanners at some stations to expedite Customs clearance is a case in point. 1. 4 Taxes and the economy The link between taxation and development is fundamental. A functioning government that can meet the basic needs of its citizens must rely ultimately on its own revenues to meet development objectives. Using the tax system, the state can mobilize domestic resources, redistribute wealth and provide essential services. There would be no need to rely on loans, aid and donor funds to balance the government budget.

Taxes affect the economy by influencing individual behavior, such as decisions about whether to work, save or invest. Taxes tend to encourage people to shift away from taxed activities to untaxed ones, and from more heavily taxed ones to lightly taxed ones. Taxes also may encourage business and workers to operate in the informal sector, as opposed to the formal sector. The informal sector is often difficult to tax for a variety of reasons. Economic growth expands the tax base and therefore results in an increase in tax revenues.

However, high tax rates dampen economic activity and encourage tax evasion. Cutting taxes can promote economic growth and increase compliance to such an extent that the tax system will generate the same amount of revenue as without the tax cut. In Zimbabwe, there is no evidence that tax cuts are able to boost economic growth to increase revenues above where they would have been. Evidence suggests that raising tax rates generally increases revenue collections, while reducing tax rates results in lower taxation.

The current state of a slow economic rebound for Zimbabwe implies a lower and shrinking tax base, exacerbated by the low incomes paid to the majority of the workforce. The government therefore has to increasingly rely on consumption and import taxes to sustain the budget. Low economic activity means insignificant corporate and income taxes from business and industry. 1. 5 The toolkit This toolkit is part of efforts to equip Parliamentarians and CSOs to meaningfully participate in budget processes, as it relates to the raising, reporting and monitoring of Government revenues.

An understanding of the government sources of revenue is a key step for Parliament, citizens and CSOs to effectively engage with the Government and hold them accountable for the management of public funds. Armed with this vital information of public revenues, Parliamentarians and CSOs will be able to initiate the monitoring of public revenues which involves: identifying and analyzing sources and amounts of government revenues like taxes, income from natural resources, loans and grants; and assessing the fairness and efficiency of revenue generation such as the systems of taxation and management of natural resources.

By understanding the sources of government revenue, parliamentarians and civil society are able to meaningfully engage government policy on revenue mobilization and debate both in plenary and in other public fora on fiscal policies that affect the funding of economic development. It will allow parliament and CSOs to question and or influence how the Government mobilizes financial resources and how those resources are utilized. Chapter 2: Government Revenues categories 2. 1 Definition of Revenue

The Zimbabwe Government revenues are defined as “all taxes, fees and other income of the State from whatever source arising (not being money which is required by law to be paid into a separate fund), including the proceeds of all loans raised by the State which will form part of the Consolidated Revenue Fund (CRF). It is obtained from various activities and sources, ranging from income tax, sales tax, customs, and fees and charges raised by various government agencies. 2. 2 Types of Government Revenue

Public sector revenues may be of either the tax or non-tax variety. Typically, taxes are the primary sources of Zimbabwe government revenues accounting for above 90% of all revenue, though the proportion of tax revenues to total government revenues varies considerably among levels and units of government. A tax can be defined as a compulsory contribution exacted or charged (“levied”) by a government on a product, income, or activity. If tax is levied directly on personal or corporate income, then it is a direct tax.

If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure, established function or functions. One of the most important uses of taxes is to finance public goods and services, such as public hospitals, schools and roads. To tax (from the Latin taxo; “I estimate”) is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a government or the functional equivalent of a government such that failure to pay is punishable by law.

A tax may be defined as a “pecuniary burden laid upon individuals or property owners to support the government [… ] a payment exacted by legislative authority. A tax “is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority” and is “any contribution imposed by government whether under the name of toll, duty, custom, excise, subsidy, aid, supply, or other name. ” Tax burdens are ultimately borne by individuals or businesses. Tax revenue is the income that is gained by governments through taxation.

Just as there are different types of tax, the form in which tax revenue is collected also differs; furthermore, the agency that collects the tax may not be part of central government, but may be an alternative autonomous institution such as the Zimbabwe Revenue Authority (ZIMRA). Most tax income goes into the Consolidated Revenue Fund, managed and controlled by Treasury or the Ministry of Finance. Taxes generally serve more than one purpose or goal, though a single purpose is typically dominant, i. e. to provide revenues to the government which imposes the tax. In most instances, this is the primary motive for the existence of the tax.

In some instances, taxes may exist for regulatory purposes. Taxes may be regulatory in either micro-economic or a macro-economic context. In the micro-economic sense, they may influence the consumption of a particular good or the utilization of a particular productive resource. A regulatory tax designed to discourage the consumption of a particular item, such alcoholic beverages or tobacco products is termed a sumptuary tax. An adaptable tool of macroeconomic fiscal policy directed toward achievement of the stabilization goals of the society is the personal income tax.

Zimbabwe introduced the presumptive tax to broaden the revenue base in light of the increased informal business activities. Selected sectors of the economy were targeted to ensure the participation of informal businesses in tax payment in line with experiences of other developing countries. The sectors include mainly transport operators and hair dressing salons. The tax is a predetermined figure applicable to the different sectors and subsectors.

Taxes may be reduced to encourage the production of certain strategic commodities, e. g. the reduction in customs duty on imported energy savers, while imposing a tax on incandescent bulbs (see Budget 2011) 2. 3 Major Taxes charged in Zimbabwe Revenue Head| Brief Description| Collection method| Collected by | Taxes on income and Profits| | | | Income Tax:| | | | Individuals| Taxes paid by all employed individuals in government, private sectors.

Commonly referred to pay as you earn (PAYE) The PAYE system is a method of paying Income Tax on remuneration. | The employer deducts tax from employees’ salaries or pension earnings before paying out the net salary or pension. The due date for the submission of PAYE returns and payment is the 10th of the following month.

The official tax table operates on an escalating scale basis, (i. e. the higher one’s earnings the greater percentage tax one pays on each bracket of earnings). When one’s earnings reach a certain amount, the percentage stops increasing and a flat rate of tax becomes applicable for any earnings above this level – that is Marginal Tax Rate (MTR). The Marginal Tax Rate for 2011 tax year is 35%. The tax-free threshold for individual taxpayers for 2011 is US$225. 00| Employers in the public and private sectors and submitted to ZIMRA. | Companies| These are taxes on profits made by private companies.

Currently 25% of the net profit. | Payable at the end of each financial year, usually June and December. Companies may elect to pay the deemed tax gradually| Onus on the companies to file annually their tax returns and pay amounts due, quarterly, half-yearly or annually. | Non-residents shareholder’s tax| Tax on dividends attributable to a non-resident who has shareholding in a Zimbabwean company| The non-resident taxpayer declares all income from dividends and files tax returns for assessment by Zimra and pays amount assessed as due to Zimra.

| Onus is on the taxpayer to declare his/her income through filing tax returns and payment of amount due| Resident shareholder’s tax| Tax on dividends attributable to a resident who has shareholding in a Zimbabwean company| The resident taxpayer declares all income from dividends and files tax returns for assessment by Zimra and pays amount assessed as due to Zimra. The corporation to which the taxpayer is shareholder may also elect to pay the tax component of the each dividend directly to Zimra. |

Onus is on the taxpayer to declare his/her income through filing tax returns and payment of amount due| Tobacco Levy| Levy is payable on tobacco which is sold or grown in Zimbabwe and either manufactured in or exported from Zimbabwe. | The moneys received by a recognized Growers Association or recognized Buyers Association from the tobacco levy account shall be kept in a separate fund and shall be applied to objects calculated to promote generally theinterests of those classes of persons by whom the levy was paid| Account to be known as the tobacco levy account into which the Secretary shall pay the proceeds of the levy.

| Capital Gains tax (CGT)| CGT is a tax levied on the capital gain arising from the disposal of a specified asset. Specified asset means immovable property (e. g. land and buildings) and any marketable security (e. g. debentures, shares, unit trusts, bonds and stock). | The Capital Gains Tax is calculated at a rate of 20% of the capital gain determined in accordance with the CGT Act. Where a specified asset that was acquired prior to 1 February 2009 is disposed of after that date, CGT shall be calculated at a rate of 5% of the selling price.

The rate of capital gains withholding tax for unlisted securities was reduced from 10% to 5% with effect from 1/09/2010. In the case of a sale of a listed marketable security (e. g. listed shares), the rate of Capital Gains Withholding Tax shall be 1% of the price at which the security was sold. This is with effect from 1 August 2009. The difference between the sales price and the purchase price of a capital asset. When that difference is positive, the difference is referred to as a capital gain.

When the difference is negative, it is a capital loss. | The taxpayer declares the capital gain after the disposal of his/ her asset and pays the applicable tax to Zimra. | Informal Traders tax| A presumptive tax applicable to | Local authorities or local tax office upon licensing or renewal of licensing. | Local authorities for onward submission to Zimra| ATM levy| Replaced stamp duty on cheques, and is charged on any withdrawal transaction on an ATM| Directly debited to the account holder by the bank | The financial institutions who run ATMs.

| Vehicle Carbon Tax| A tax towards the rehabilitation of the environment polluted by motor vehicle users| Included in the price of fuel| Petroleum companies dispensing fuel to motorists| Road Access Fees| Paid by foreign registered motor vehicles on entering Zimbabwean roads, also for all users of the BBR in Beitbridge| Tax payer pays on entry or exit from Zimbabwe at the border| Zimra| Toll fees| Toll gates are recent phenomena in Zimbabwe’s highways, where every motor vehicle, save for those exempt, has to pay passage fees, for using the state highways.

The fees are mainly rechanneled towards maintenance of road infrastructure. | Zimra collects at all toll points, 24hours a day and ranges from $1 to $5 depending of the class of motor vehicle. Regular users such as transport operators can buy a prepaid access card| Zimra on behalf of Zimbabwe National Roads Authority (ZINARA)| Taxes on goods and services| | | | Value Added Tax| An indirect tax levied on sale of goods and services, collected at each stage of value addition, with the last payer being the consumer. In Zimbabwe this is normally charged at 15%. | A value added tax (VAT) is a form of consumption tax.

From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the “value added” to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs. The “value added” to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs.

A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products. Fiscal registers have been recently implemented to most retailers to assist with the audit trail by the revenue authority | Businesses and traders involved in manufacture, wholesale and retail of goods and services.

Zimra also collects at border posts for goods imported, which will have a component of VAT. | Customs Duties| An indirect tax levied on imported goods, based on the CIF price of the goods. Varies according the classification of the good. Some attract zero percent rating| Each imported commodity is assigned a tariff code, which specifies the level of duty applicable | Zimra collects customs duty at all entry points (borders and airports)| Excise Duties| Ad valorem taxes levied on beer, wines, spirits, and tobacco. This is to regulate the harmful consumption of the commodities.

| Zimra makes assessments at corporates involved in the manufacture of these goods | Corporates pay directly after assessments by Zimra. | Revenue from Investment and Property| | | | Interest and dividends| Income accruing to the fiscus by virtue of its interest in a state owned enterprise or shareholding in a private entity| The State Owned Enterprises declare the interest and dividend and pay to through the controlling ministry. | Parent ministry | Rents| Rent from property owned by the government and leased to private companies of individuals or other state departments| The tenant pays to the respective government lease holder.

| The parent ministry for onward transmission to the revenue authorities or fiscus. | Fees: Department Facilities and Services| | | | Agriculture| Fees paid by beneficiaries of the Ministry of Agriculture’s technical services| May be a fixed fee paid for accessing regular services, such as extension, dipping or vaccination services| Representatives of the Agriculture ministry at all levels | Civil Aviation| User fees paid by airlines, and passengers for use of airport facilities, e.g. landing fees, departure taxes|.

The taxpayer pays upon use of service to the responsible authority. There is often a counter for at each airport manned by the responsible authority. | Airlines on behalf of CAAZ| Companies, trade marks and patents| Fees paid to the registrar of companies for processing company, trade mark and patents registration, including deeds and company searches.

| Applicant pays before services is provided| Registrar of Companies| Education| Boarding and school fees paid by students who use government educational facilities | Students pay per term| Government schools| Health| Fees paid for accessing health services at government hospitals and clinics| Patients pay on admission or if admitted after discharge| Government hospitals and clinics| National Parks| Includes fees for use of Parks facilities, such as viewing game, fishing licenses, hunting permits, use of lodges, etc| Applicants pay before accessing the required services| National Parks and Wild life Management. | Mining|.

Fees and royalties on mining claims, prospecting licenses. | Usually an annual renewable fee| Prospector pays fees to the Ministry of Mines| Roads and Road Traffic| Covers motor vehicle licenses| Charged per each term and license disc issued and displayed on windscreen| The Post Office collects on behalf of Zinara. | Road User Levy| A fee paid by all motorists for accessing state and municipal roads| Collected by fuel stations and inbuilt into the per litre price of the fuel| Fuel retailers| Reserve Bank Profits| Usually the excess of printing money, over the value of the money in circulation, commonly referred to seignorage.

| The amount of real purchasing power that government can extract from the public by printing money| The bank declares the profits and remits to Treasury; however this is currently not applicable as the bank is not printing any currency of its own. | 2. 4 Major Tax Types 2. 5 Non-tax revenues: * User charges * Administrative revenues * Government borrowings (debt) 2. 6. 1 User charges User charges are premised on the principle of that the beneficiary of a service offered by government must pay to access that service.

The collection of user charges, also known as commercial revenues, involves the sale of economic goods or resources by government for a specific charge or price. The government may produce and sell the good, such as toll gate fees, to which all motorists who drive a certain class of motor vehicle pay for their use and damage to the roads they ply, or hospital admission fees to access medical attention at a public hospital, or university fees to gain education provided by the state. This can also apply to charges on national parks and recreation facilities.

User charges are the equivalent of the operating portion of the Government budget, not the capital portion of the budget. In other words, user charges pay for current consumption of goods and services and do not include fees for capital costs. 2. 6. 2 Administrative revenues Allocative actions which are basically concerned with the general administrative functions of government usually involve what are known as administrative revenues. In some cases the buyer has free choice concerning payment of the administrative revenue, e. g. a fishing licence, or hunting permit, to government.

In general, administrative revenues include licenses, permits, some fees and fines. User charges differ from earmarked taxes such as those on fuels, in that the former represent an outright sale of an economic good or resource by a unit of government, while the latter represent the application of a tax to the sale of an economic good by the market sector of the economy. The service provider is also the revenue collector on behalf of the Treasury. 2. 6. 3 Debt Another primary source of governmental revenue is the ability of the public sector to create debt.

Government debt is created when the current revenues are less than the current expenditures. Debt is created to fill the residual deficit by means of borrowed funds by the public sector. 2. 6 Institutional Framework for Revenue Collection (Zimra) Treasury Zimbabwe Revenue Authority Other revenue collection agencies Domestic Taxes Customs & Excise Corporate tax Personal income tax Value added tax Large Client Office (LCO) Border Taxes Excise from tobacco, spirits, wines, beer Toll gate fees 2. 7 Consolidated Revenue Fund In terms of the Income tax act [cap 23:06], income tax shall be charged, levied and collected throughout Zimbabwe, for the benefit of the Consolidated Revenue Fund.

This act empowers the Treasury through the Commissioner-General of Taxes and other Ministries, departments and agencies to charge and collect on behalf of the CRF all income declared by the act. “Unfortunately, there is no capacity at the present moment to actually increase our revenue as the 2011 budget of $2,7 billion was money anticipated to be accumulated up to December 2011. The country was supposed to amass revenue of up to $230 million in March, but failed to do so,” said Biti said a fortnight ago.

He said it was only in March and June that the $230 million margin was reached, during which the ministry received quarterly payments for corporate taxes. In the first six months, “acceptable revenue” was short by $100 million. (Newsday 26 July 2011) “The Zimbabwe Revenue Authority announced in May (2011) that revenue collection for the first quarter of this year exceeded target by 11 percent to reach US$618,9 million, as most of the revenue heads registered an upturn. Zimra board chairman Mr Sternford Moyo said at the time revenue collections were performing well against set targets for the period, despite the constrained economic growth.

Total gross collections for the quarter amounted to US$618,9 million against a target of US$555,2 million. Value Added Tax and individual tax were the largest contributors to total revenues of US$242,4 million and US$134,1 million respectively. This was against a target of US$241 million for VAT, and US$105,4 million for individual tax. Zimra collected US$78,1 million in customs duty against a target of US$70 million, constituting a 12 percent variance. This was an improvement from the same period last year when US$66 million was collected. (Midterm Fiscal Review 2011)

Chapter 3: An analysis of all sources of revenue or income for government Policymakers debate the nature of the tax structure they plan to implement (i. e. , how progressive or regressive) and how they might affect individuals and businesses (i. e. , tax incidence). 3. 1 Analysis of government revenue (2010 – 2011) Table 1: Sources of Zimbabwe Government Revenue (2009 – 2011) | 2010| % of total revenue| 2011| % of total revenue| Taxes on income and Profits| 736,472,000| 33%| 893,360,000| 33%| Income Tax:| | | | | Individuals| 413,806,000| 18. 81%| 480,000,000| 19%| Companies| 215,770,000| 9.

81%| 270,000,000| 10%| non-residents shareholder’s tax| 27,774,000| 1. 26%| 35,000,000| 1%| Resident shareholder’s tax| 10,417,000| 0. 47%| 17,000,000| 0%| Tobacco Levy| 3,981,000| 0. 18%| 6,215,000| 0%| Capital Gains tax| 11,585,000| 0. 53%| 14,900,000| 1%| Resident tax on interest| 3,471,000| 0. 16%| 3,000,000| 0%| Capital Gains Withholding tax| 8,450,000| 0. 38%| 10,050,000| 0%| Informal Traders tax| 5,219,000| 0. 24%| 6,295,000| 0%| Withholding taxes on tenders| 1,540,000| 0. 07%| 1,858,000| 0%| ATM levy| 35,000| 0. 00%| 42,000| 0%| Vehicle Carbon Tax| 30,105,000| 1.

37%| 40,000,000| 1%| Road Access Fees| 4,319,000| 0. 20%| 9,000,000| 0%| Taxes on goods and services| 1,310,850,000| 59. 58%| 1,551,500,000| 60%| Value Added Tax| 811,560,000| 36. 89%| 990,000,000| 37%| Customs Duties| 335,645,000| 15. 26%| 325,000,000| 15%| Excise Duties| 163,645,000| 7. 44%| 236,500,000| 7%| Miscellaneous Taxes| 67,867,440| 3. 08%| 119,515,000| 3%| stamp duties and fees| 18,029,000| 0. 82%| 25,200,000| 1%| Estate Duty| 50,000| 0. 00%| 60,000| 0%| Business Licences| 6,853,440| 0. 31%| 6,000,000| 0%| Royalties| 42,935,000| 1. 95%| 88,255,000| 2%|.

Revenue from Investment and Property| 48,490,000| 2. 20%| 130,600,000| 2%| Interest and dividends| 48,250,000| 2. 19%| 130,100,000| 2%| Rents| 240,000| 0. 01%| 500,000| 0%| Fees: Department Facilities and Services| 17,868,840| 0. 81%| 27,725,000| 1%| Companies, trade marks and patents| 3,694,300| 0. 17%| 4,320,000| 0%| Mining| 2,719,000| 0. 12%| 4,500,000| 0%| Roads and Road Traffic| 8,248,360| 0. 37%| 15,000,000| 0%| Road User Levy| 60,800| 0. 00%| 125,000| 0%| Other| 3,146,380| 0. 14%| 3,780,000| 0%| Other| 18,451,720| 0. 84%| 23,300,000| 1%| Pensions and Contributions| 1,200,000| 0.

05%| 1,200,000| 0%| Sale of State Property| 500,000| 0. 02%| 900,000| 0%| Other Sales| 480,000| 0. 02%| 600,000| 0%| Judicial Fines| 9,620,470| 0. 44%| 13,000,000| 0%| Refunds of miscellaneous payments from votes| 219,520| 0. 01%| 300,000| 0%| Miscellaneous| 6,026,200| 0. 27%| 6,500,000| 0%| Rent | 405,530| 0. 02%| 800,000| 0%| TOTAL| | 100. 00%| | 100. 00%| | 3. 2 Graphical Analyses of Government Revenues Graph 1: Contribution to the Zimbabwe Government Revenue: 2010 Chart showing the percentage contribution of key Zimbabwe Revenue Heads Source: Zimbabwe Revenue Authority.

Main sources of Zimbabwe Government Revenue. Source: Ministry of Finance Revenue Outturn Fiscal Year 2010Revenue Outturn Fiscal Year 2011 Figure [ 1 ]: Trends in Revenue Outturn 2010-11 All the above graphs confirm that VAT is the major source of government revenue in Zimbabwe followed by individual income tax. Customs and excise are also shown as major contributors of revenue. Company corporate tax is subdued as a result of low economic activity, as most companies are still recapitalizing