The Malawi Revenue Authority (MRA) has gone back to beating revenue targets, having collected K329.89 billion in total tax revenues in July.
This represents a five percent or K15.81 billion jump above the K314.08 billion target for July. It is also 62 percent higher than the K203.85 billion collected in July 2023.
This is contained in a press release issued by the tax collector on Monday.
Among other things, taxes on income and profits amounted to K200 billion, surpassing the projection of K164 billion; Pay as You Earn (Paye) collections totalled K50.07 billion against the K49.71 billion target, fringe benefits (FBT) and non-resident taxes (NRT) combined amounted to K13.25 billion exceeding the target of K9.66 billion.
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Corporate tax collections, encompassing company assessments and provisional taxes, reached K110.68 billion against a target of K74.82 billion; overall tax collections on goods and services amounted to K98.06 billion; whereas Value Added Tax (VAT) recorded a total collection of K74.41 billion against the K84. 34 billion targets.
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MRA Commissioner General John Biziwick said the achievement is a testament to the collective efforts and dedication of all stakeholders.
“We extend our heartfelt gratitude to all stakeholders for their invaluable support. The exceptional performance would not have been possible without the pivotal contributions of tax practitioners, including clearing agents and accountants, as well as the media and civil society organisations (CSOs).
“Most importantly, we acknowledge the vital role played by taxpayers across all categories—large, medium, and small—in reaching this milestone.
The dedicated efforts of MRA staff members also deserve special recognition, as their commitment has been instrumental in collecting the essential revenue required for government operations,” Biziwick said.
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This is coming hot on the heels of a missed target in the first quarter of the 2024-25 financial year where the tax collector managed to collect K656.488 billion between April 1 and June 30 2024.
This represents a K91.629 billion deficit or 12 percent shy of the K748.117 billion target.
In an earlier interview, tax expert Emmanuel Kaluluma said tax collection activities are cyclic and the tax administration should not point at symptoms as the cause for failure to meet the target.
“We have taxpayer education which has to improve and be practical. In addition, the first quarter of the tax year suffers delays in application of new laws which have been put in place as tools for achieving the government financial plan or budget,” she said.
