Malawi private schools embrace tax compliance
Private schools under the Independent Schools Association of Malawi (ISAMA) have made commitments to honour their tax obligations and always request for clarification from MRA whenever they encounter technical challenges.
The schools made the stand on Friday, 10th March, 2017 at Mawila Private School in Liwonde during a workshop aimed at enhancing tax compliance conducted by MRA under the ongoing ‘Everyone Must Pay Taxes’ Campaign.
Speaking on behalf of the group’s members drawn from the Eastern Region, ISAMA president Joseph Patel said many school owners were hesitant to register for tax because of fear of the unknown.
“The perception by many owners was that all the revenue made by the schools must be taxed but the workshop has assisted us with knowledge that it is only profit that is taxed. We have also been reminded of our role as employers to deduct and remit Pay As You Earn (PAYE). The most crucial thing is that we now have all this information handy through the brochures given to us and access to the MRA website,” Patel said.
The Authority’s Head of Corporate Affairs Steven Kapoloma said the ‘Everyone Must Pay Tax’ Campaign is focused at ensuring that all sectors of the economy participate in the development of the country by complying with taxes.
“It is crucial that school owners and managers have the right knowledge about taxes so that they easily comply with tax laws as an institution and also channel that knowledge to students who are future taxpayers. Businesses of all kinds must pay tax and it is from such collection that the country will improve the tax net,” Kapoloma said.
MRA is directly engaging taxpayers and prospective ones in the ‘Everyone Must Pay Tax’ Campaign.
The meeting in Liwonde was the second one with ISAMA after a similar one in Blantyre. So far the Authority has met the civil society, SMEs, the media and cross-border traders. Various business groups and sectors will be engaged in due course.
