Tag Archives: MRA Head of Corporate Affairs Steven Kapoloma

Business, Malawi

MRA registers 3,270 e-tax payment system users countrywide

Malawi News Agency (MANA)

Malawi Revenue Authority (MRA) has registered 3,270 active users of newly introduced electronic tax payment system since its launch in June 2017, increasing compliance rate amongst tax payers, MRA Head of Corporate Affairs Steven Kapoloma has said.

Kapoloma disclosed this to Malawi News Agency (MANA) during electronic tax payment awareness meeting during the weekend in Zomba where MRA officials interacted with over seventy tax payers.

E-tax payment system is the process of paying taxes online with immediate update on one’s tax account through automated dealer bank.

“MRA registered 500 electronic tax payers in October 2017; and now the figure has surged to 3,270 active e-tax payers country wide,” said Kapoloma, adding that the development was good for the economy of the country.

He said as at now, 60 per cent of MRA’s tax collection is done through e-payments, saying they (MRA) would continue with the awareness meetings to reach out to those that have not yet registered for the new system.

During the awareness meeting, MRA also demonstrated to tax payers how to register for the digital system and explained its benefits to the economy.

On whether e-tax payment is mandatory considering that some business people have not yet acquired the electronic gadgets, Kapoloma said: “It is not a question of mandatory but convenient to both tax payers and MRA as the new system ensures real time settlement of tax liability.

He assured the tax payers that the e-payment system is user-friendly and was introduced to make life easier.

Zomba based business man, Raymond Kassam, concurred with Kapoloma that the system is easy to use and convenient.

“I was compelled to register for the system after being satisfied by the benefits the system offers such as instant update of taxpayer’s account,” Kassam said.

Business, Religion

MRA’s 30% tax imposition on churches activities stirs controversy

Maravi Post Reporter

BLANTYRE-(MaraviPost) – The recent Malawi Revenue Authority (MRA) imposition of 30 percent tax on churches and faith-based organisations operating business ventures effective October, 2017, has not been well received.

MRA introduced the tax in its drive to widen the tax base for maximum revenue collection.

However, some members of the faith community in Malawi, strongly question the motive behind this drive; they argue that the tax bill is bent on milking religious institutions, that have numerous humanitarian programs.

At a meeting with the clergy in Blantyre this week, MRA Head of Corporate Affairs Steven Kapoloma said the tax will apply on businesses which religious institutions run directly or indirectly to boost their revenue collection.

Kapoloma explained that the new tax is not applicable to offerings and tithes.

He told the clergy to embrace this tax measure, stating that it is aimed at improving the country’s socio-economic development.

Kapoloma added that religious bodies qualify to pay tax because a number of them make payments to various suppliers and service providers.

“The Taxation Act requires taxes to be charged on, levied on, and paid by every ecclesiastical body at the rate of 30 percent as specified in the eleventh schedule to the Taxation Act,” said Kapoloma.

But reacting to the new tax obligation, Pastor Jeston Chiweza, General Secretary of the Living Waters International Church, said they do not understand the whole idea behind the new tax, which is supposed to be principle-based, not law-based as they currently sound.

“There is a continuous revolution in the world that has not spared all sectors of the church, including entertainment, transport, education and health; hence, they should rethink on what is tax-free, because that has potential to defeat our ecclesiastical role as religious bodies,” Pastor Chiweza said.

Muslim Association of Malawi (MAM) Secretary General Twaibu Lawe, also expressed disapproval with the new tax measure, arguing that some mosques are already feeling the effects of ecclesiastical levy.

Among the religious institutions to be subjected to the tax include those running private schools, hospitals, and clinics and other properties, which churches normally hire out for profits.

The new tax structure comprises income tax, pay as you earn (PAYE), withholding tax, value added tax (VAT), and the Tevet levy introduced in 2015.