Advertisement
Business

Malawi Revenue Authority beating targets

Advertisement

Revenue collection is still continuing a positive trajectory with the Malawi Revenue Authority (MRA) beating its collection target for December 2016 by about K6.1 billion.

Cumulatively, MRA has been able to collect K377.08 billion in the first half of the 2016/17 fiscal year against a target of K339.15 billion. This translates to an excess of K37.93 billion.

MRA has attributed the good performance to strong performances in tax lines including, Pay as You Earn (Paye), Fringe Benefit Tax, Provisional Tax, Import Duty, VAT and Excise Duties.

Advertisement

In a recent interview, tax expert, Emmanuel Kaluluma, forecast positive outturn by the revenue collection body saying with the right interventions, MRA has capacity to further improve its revenue collection capacity.

He said lapses in revenue collection in the past financial year were as a result of inability by authorities to fully enforce the law.

In its Revenue Performance Report for December 2016, MRA said in the month under review, total tax revenues collected amounted to K60.41 billion against a monthly projection of K54.31 billion, thereby recording revenue collection surplus of K6.11 billion.

Advertisement

In the month, Paye had a collection of K19.5 billion, out-performing its target of K17.82 billion.

“This has been attributed to a favourable response the Authority received from taxpayers after a call to have taxes due remitted before closure of business for end of year holidays,” reads part of the report.

There was K19.3 billion VAT collected against a target of K16.7 billion. The report says this was due to strong performance both in Domestic VAT at K8.2 billion and Import VAT at K11.1 billion.

At K5.8 billion, Excise Duty over performed its projection of K4.7 billion due to huge importation of excisable products such as fuel.

Import Duty collection at K6.2 billion was 18 percent above its monthly projection.

The report further says Corporate Tax collections exceeded its monthly target by 10 percent as K3.6 billion was collected against K3.2 billion. This has been attributed to provisional tax which over-performed its monthly projection by 24 percent.

In an earlier interview, MRA Head of Corporate Communications, Steven Kapoloma, said there is high compliance among tax payers which has boosted revenue collection.

Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Tags
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker