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DOMESTIC revenues increased by 7.6 percent surpassing the target of K49.1 billion, says a Ministry of Finance annual economic report

The report has attributed this performance to both tax and non-tax revenues coupled with improved compliance in some revenue categories.

This is contained in the Ministry of Finance annual economic report for 2018 recently launched in Lusaka.

During the period under review, the report says, total revenue and grants collections were K52.4 billion and were above the budget target of K51.5 billion, representing an increase of 3.7 percent.

The report describes the overall budget performance for last year as being relatively fair despite some constraints.

“Both total revenues and grants and expenditures including repayment were above budget target. The budget deficit for the year on cash basis marginally declined,” the report says.

Tax revenue collections, the report says, stood at K44.2 billion representing an increase of 8.2 percent more than the budget target of K40.9 billion.

The report says the outturn was mainly on account of improved compliance on Value Added Tax (VAT) and higher collections than programmed on Pay As You Earn (PAYE) and insurance premium levy.

According to the report, VAT receipts stood at K17.4 billion outrunning the target of K12.4 billion by 40.3 percent.

The report says this was supported by factors such as the appointment of tax agents.

However, the report says customs and excise duties collection continued to decline last year and were 18 percent below the target of K8.0 billion.

The lower than anticipated performance, the report says, was attributed to customs and excise exemptions that applied on most of the imports coming from free trade zones.

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