Malawi Revenue Authority (MRA), this week said during the fiscal year just ended, the tax collecting body collected K767.61 billion against a projection of K725.06 billion; registering a K42.56 billion surplus.
MRA Commissioner General, Tom Malata said in all the tax lines namely, Corporate Tax, Pay as You Earn, Withholding Tax, Provisional Tax, Value Added Tax, Import Duty and Excise Duty, among others, revenue collections recorded above their respective projections.
Malata said this in his appreciation report dubbed “Voluntary Tax Compliance.”
“The exceptional performance is on the account of voluntary tax compliance by taxpayers, who honored their tax obligations by paying taxes due in full and on time. Taxpayers also responded well to various modernization initiatives, which the MRA championed to improve taxpayer services, and reduce the cost of compliance.
Malata said companies, individuals, and the public, were also supportive towards our enforcement programme’s to curb tax fraud, tax evasion, and smuggling. The revenue collected has helped the Government to run essential services such as provision of national security, medicines for hospitals, and paying doctors,’ nurses’ and teachers’ salaries in public facilities.
“With these domestic resources, Government also ably maintains roads, bridges, while constructing hospitals, the much needed classroom blocks in various areas, as well as providing farm input subsidies, just to mention a few,” said Malata.
He said that the MRA as a responsible tax administrator, does not take such contribution for granted; he therefore, urges people to continue honoring their tax obligations on time and in full in the current 2017/18 financial year.
He added, that “the new financial year presents an exciting and challenging terrain as Government has requested us to collect K918 billion in taxes. We believe this is attainable, based on the commitment and trust you, our valuable taxpayers, have shown in the just ended year,”
He said the Authority is aware that there are some businesses that, due to some genuine reasons, failed to pay taxes in due time. He, encourage these to visit any nearest MRA office so that the MRA can address the challenges to enable them discharge their tax obligations as required.
Malata assured the public that MRA would continue to handle tax affairs with dedication, professionalism, and integrity.
Malawi’s 2016/2017 national budget was K1.149 trillion, while the 2017/2018 national budget is worth K1.3 trillion.