The Malawi Revenue Authority (MRA) has said it has collected over K2 trillion in taxes in the 11-month period between April 2023 and February 2024.
The revenue collection body is optimistic that it will beat its K2.18 revised target for the 2023-24 financial year which ends this month.
This came out during a press briefing that the authority held at its Msonkho House in Blantyre yesterday.
MRA Commissioner General John Biziwick told journalists that in the third quarter of the current financial year, the authority beat its target by K27.31 billion after collecting K571.14 billion.
He said domestic taxes increased to K1.410 trillion while customs and excise taxes reached K591.632 billion.
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This, according to Bizwick, reflects MRA’s unwavering commitment to excellence across all sectors.
Key highlights include noteworthy collections in Value Added Tax (VAT) at K590.943 billion, Pay As You Earn (Paye) at K420.936 billion, Corporate Tax at K330.648 billion, and Excise Duties and Import Duty, at K177.635 billion.
“There are several factors why we are able to beat that target. The devaluation of the Kwacha from October 2023 worked positively for us because the value for duty purposes was much higher.
“But also, there has been more compliance from the taxpayers as well as hard work from our officers,” Bizwick said.
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He added that the revenue collection body is upbeat to meet the K3.226 trillion revenue target for the next financial year.
“We have increased tax collections by about 36 percent; so, if we continue growing at that rate, we should be able to hit at least K2.99 trillion.
“Currently we are implementing certain reform projects which are supposed to bring in efficiency in the way we operate,” Biziwick said.
During a familiarisation tour to MRA recently, Minister of Finance Simplex Chithyola Banda challenged the tax collecting body to triple its tax revenue collections in a bid to aid the government meet its expenditure needs.
MRA collects on average K150 billion a month in tax revenues, translating to K450 billion a month, if the tax collector is to meet the minister’s ambitious target.
Chithyola Banda said people should know that there is potential at MRA and it can collect more than it is currently doing.
“We need to expand the tax base. For example, we need every business to start using the electronic fiscal devices (EFD) because that guarantees the tax we are to get from such businesses and ensures they have a bank account so that we are also able to consolidate their tax and business figures.
“We also need to employ radical measures to make sure that nobody evades tax so we want to do things differently. Let me also appeal to Malawians to be tax compliant. My ministry will help the MRA to make sure that everyone who evades tax is taken to book,” Chithyola Banda said.
