The Malawi Revenue Authority (MRA) has spoken highly of the banking sector’s contribution to corporate income tax, with figures indicating that, combined, commercial banks in the country paid K70.4 billion in taxes in the first half of the 2023-24 financial year (FY).
The amount is only seven percent shy of the K76.3 billion corporate income tax that the sector contributed in the 2022-23 FY.
It is also 17 percent higher than the K60 billion banks contributed in the 2021-22 FY.
MRA Commissioner General John Biziwick said the banking sector’s resilience remains essential for sustainable economic growth.
He was speaking during a Bankers Association of Malawi (Bam) dinner held in Blantyre on Friday.
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“As we are aware, banks are generally doing well and, for any economy to function very well, you need banks that are resilient and are able to contribute to the growth of the economy,” Biziwick said.
He bemoaned the high default rate among challenges the banking sector is facing, saying there is a need for a strong legal system to enable the banks to take collateral from those that are unable to pay loans.
FDH Bank Managing Director Noel Nkulichi said the industry remained resilient amid challenges facing the operating environment.
“The sector is doing well mostly because of the resilience of the banks. With the way the economy is operating, more people would want to engage in further financing; therefore, they are getting all that from the banks,” Nkulichi said.
