Minister of Finance Sosten Gwengwe has challenged the Malawi Revenue Authority (MRA) to surpass the K1.6 trillion domestic revenue target for the 2022-23 financial year.
This came out when the minister toured MRA head office in Blantyre on Tuesday.
Gwengwe said a digitisation process being undertaken at MRA would enhance compliance among taxpayers.
He then urged MRA to enhance its relationship with taxpayers for the latter to perceive tax-payment as an obligation and not a burden.
“We come up with these targets together with the MRA and they are confident that we, as a nation, should be able to put together such kind of resources.
“We are confident that the strategies being put in place will help enhance tax collection and MRA will hit the targets, even surpass it,” Gwengwe said.
MRA Board Chairperson Vizenge Kumwenda said the target was attainable.
“Despite the economic challenges facing the country, we would be able to collect enough resources if everyone contributes through paying of taxes,” Kumwenda said.
MRA officials told Gwengwe that revenue collection grew by over 20 percent in the 2021- 22 financial year, compared to a 10 percent growth in the preceding financial year.
Presenting the 2022-23 National Budget Statement recently, Gwengwe said the Treasury aimed at reducing the tax burden on the low and middle-income earners, expand the tax base, seal loopholes in the tax system, encourage voluntary tax compliance, and automate most of the function undertaken in government ministries, departments and agencies.
Among other things, the budget exempts water and cooking oil from the Value Added Tax (VAT) and abolishes the withholding VAT system.
The treasury has also introduced a rebate for withholding tax in the gaming industry and removed import duty and excise tax on sanitary pads and some solar products.