By Wezzie Gausi:
The Ministry of Finance has said the government will migrate to digital revenue collection at the start of the second quarter of the 2024/25 financial year in July.
The Treasury says it expects the move to raise tax revenues for the government.
In an interview, Secretary to Treasury Betchani Tchereni said the government has been looking at ways to enhance revenue collection in both tax and non-tax revenues.
He said it is their decision that all collections of non-tax revenues must be automated.
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“There are a number of avenues through which both tax and non-tax revenues can be increased through leveraging on digital innovations. So, we have proposed that by the end of the first quarter of the next financial year, digital platforms will be the only way through which revenues will be collected. Whether it’s fines, fees or any revenue. These will be collected electronically, ” Tchereni said.
Centre for Social Accountability and Transparency (CSAT) Executive Director Willy Kambwandira welcomed the move stressing that it will ensure transparency, accountability and expenditure efficiency in government Ministries Departments and Agencies.
“…it is also important for government agencies to improve their facilities and services as citizens expect improved service delivery in exchange. Otherwise, the current state of most government services including markets do not motivate citizens to pay revenue,” Kambwandira said.
In October last year, Finance Minister Simplex Chithyola-Banda challenged the Malawi Revenue Authority (MRA) to triple its tax revenue collections in a bid to aid the government meet its expenditure needs.
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Currently, 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.
M R A Commissioner General John Biziwick said the target is realistic considering the potential that the Authority has.
However, he was quick to indicate that it can be achieved in the medium term.
“We can achieve that once we implement certain reforms. We are looking at full implementation of the Msonkho Online, that is our integrated tax administration system which will look at a tax payer with a bird’s eye view. We will be looking at the tax payer in terms of all the taxes not just one tax. This will help us manage compliance for each tax payer,” Biziwick said.
