MRA collects K1.3tn in 10 months – Capital Radio Malawi
22 June, 2024

MRA collects K1.3tn in 10 months

  • Optimistic of meeting 1.5tn annual target

The Malawi Revenue Authority (MRA) has collected 1.3 trillion kwacha in 10 months, raising strong hopes of beating the 1.5 trillion kwacha annual target.

This follows MRA’s fine performance in January, where it over-collected by 111% at K161 billion, adding to its three quarters accumulation of K1.14 trillion.

In his speech when announcing the financial statement, MRA Commissioner General John Bizwick expressed optimism of meeting the set target of 1.534 trillion kwacha.

According to Bizwick, the gains are, among other factors from policy changes under PAYE and strong performance from financial sector players.

“There is the revision of PAYE brackets which was done last year by the ministry of finance and we also introduced advanced income tax on imports and there are also some areas where some of the companies are doing well especially the financial and services and the banking industry,” He said.

However, Bizwick acknowledged the revenue body slightly missed its third quarter target after collecting K391 billion out of K396 billion between October and December.

It managed 100% in October, while in November and December it fell short at 97 % and 96 % respectively.

Among others, intermittent power supply, forex shortage and delays in implementation of tax stamps and presumptive tax, are some of the negative factors that contributed to the failure.

Meanwhile, MRA which celebrated 23 years of existence on 15th February aims at fully digitising its platforms to easily achieve a 17.4% tax to GDP ratio by 2025.

The baseline ratio is 10.2%.

Bizwick says through the 23 year journey, MRA has improved from corruption prone manual transactions towards online taxation dealings which are effective.

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