The Malawi Revenue Authority (MRA) has commenced the first month of the fiscal year on a positive note after beating its revenue target for the month of July.
In June, MRA also surpassed its target, closing the 2014/15 fiscal year on a good note, as they had a collection of K56.1 billion, up from the projected K54.3 billion.
The revenue collection body was given a target of K59.6 billion for the month of July but they managed to collect K62.5 billion, representing 20 percent growth as compared to same period last year.
MRA Deputy Director for Corporate Affairs, Steven Kapoloma, said the July performance is attributed to strong collections in Value Added Tax, Provisional Tax, Excise Duties, Fringe Benefit Tax, Turnover Tax and Non- Resident Tax.
Kapoloma further attributed the positive result to taxpayer compliance.
“We thank taxpayers who voluntarily come forward to pay their taxes on time for their compliance. This has been witnessed in the improved collection for the two consecutive months. The tax base is widening and we are optimistic that this progress will continue.
“For those who are still reluctant to pay, we urge them to change their approach as it is our intention to work with anybody for the continued growth and development of our beloved country, Malawi.
“However, the public should be reminded that wherever necessary, MRA will not relent but work according to the laws to ensure all due taxes are paid on time,” Kapoloma said.
He further said the Authority is undertaking several modernisation and revenue enhancement activities to provide modern and efficient services aimed at reducing the cost of tax compliance while at the same time maximising revenue collection.
“There markable performance in June and July is a positive result of increased enforcement and taxpayer engagement activities aimed at countering non-compliance, tax evasion and smuggling,” he said. Kapoloma also said the ASYCUDA system and the opening of the inland port in Lilongwe has also contributed to the good performance of the Authority.
“The migration to ASYCUDA World system is at an advanced stage with 11 stations now running online. The system offers speed and convenience as it allows for goods clearance electronically from anywhere in the world.
“Importers and exporters are also getting speedy and efficient cargo clearance at inland examination centres, thereby reducing congestion at the borders. The inland port focuses on big containers, allowing more time for examination,” Kapoloma said.
MRA was tasked by the government to contribute about 70 percent of the K1 trillion 2016/17 budget.
On this, Kapoloma was optimistic that the Authority can meet the target if Malawians continue to voluntarily pay their taxes.
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