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MRA starts collecting advance income tax

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Cross-border traders who are not registered with the Malawi Revenue Authority (MRA) will from May 1 start paying a three percent advance customs and excise value duty on their goods at the port of entry into Malawi.

This comes at a time the revenue collection body has moved to implement the Advance Income Taxation (ATI) on imports in line with the Customs and Excise (Tariffs) Amendment Order of 2021.

The tax will, however, not be imposed on imports that are meant for personal use, for businesses of registered taxpayers who are already issued with a valid Tax Clearance Certificate or Withholding Tax Exemption certificate and for government ministries, departments and agencies.

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Announcing the implementation of the ATI to journalists on Tuesday, MRA Deputy Commissioner for Customs and Excise Chimwemwe Kawalewale said the move is aimed at registering more people into the tax net and growing the tax base, apart from enhancing tax compliance.

“MRA is implementing Advance Income Tax on imports to level the playing field and ensure that all businesses are paying their fair share of taxes due.

“If we bring more people into the tax net, then the government will have adequate revenue required to fund various development programmes like the construction of roads and bridges, school blocks and provide learning and teaching materials, construction of clinics and providing medicine and subsidise agriculture inputs, among other things,” Kawalewale said.

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He said the tax measure is targeting goods imported by persons engaged in business activities.

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