Malawi tax collection sinks to new low

Finance Minister Goodall Gondwe hopes to domestically bankroll his current budget and the incoming one costing K900 billion are going up in smoke as government’s major cash generator, the Malawi Revenue Authority (MRA) continues to show signs of fatigue and non-performance.

MRA boss: Ralph Kamoto

MRA boss: Ralph Kamoto

MRA has for a fourth month running failed to meet Ministry of Finance’s target as witnessed in its March revenue report.

MRA said in a statement that it has only collected K34.34 billion of tax in March 2015 instead of MK38.11 billion needed by government.

The report says cumulatively, total tax revenues collected in the fiscal year 2014/15 totalled K344.33 billion, still short of the K354.06 billion need for the period.

Although this low collection by MRA has been justified by some to unstable economic conditions, several sources in MRA have said staff are heavily demoralized and literary living in fear to collect more as needed because of many negative decisions unilaterally by Commissioner General Ralph Kamoto.

Since his appointment Kamoto has cracked fires of power struggles in MRA. Now over 40 officers have been suspended for vague charges like coming from the same area with previous bosses and for giving facts about MRA operations thought to be siding with other bosses.

The tax agency has now becoming a number one security arm by eavesdropping calls on suspected officers, this comes shortly after announcing to all staff of monitoring personal, officials emails and social media accounts.

The relentless victimisation of staff is said to have contributed most to the fall of tax collection to new lows Malawi has ever experienced.

Some analysts have suggested that the Minister of Finance himself to intervene or lose out national plans to operationalise the intended K900 billion budget .

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33 thoughts on “Malawi tax collection sinks to new low”

  1. Boyd Kilembey says:

    I dont blame those who evade tax. It is difficult to be patriotic anymore. Imagine you sweat all the way to import some juices from South Africa and you are heavily taxed only for the tax to be cashgated? This man who cashgates the mnoney lives like a king at Golden Peackock bar and buys a round for the whole crowd of drunkards. And you have the president who goes to America for 2 weeks staying in expensive hotels and eating the same taxes we pay through the nose
    And MRA compound it with their “kjnow it all” attidude. Even if you present genuine receipts, they trash those and make their own calculations as if they are born in South Africa. So most of the tradesrs have resorted to under declaring the goods, or corrupting MRA officials.

  2. A nyima says:

    Government should just reduce the tax rate especially paye so that pple should have more to spend and then leave the economy to economic mechanism to manage the economy, u will see rapid ecomic growth and all these about cashgate mr kamoto will end.

  3. mlomwe2 says:

    MK34 BILLION AGAINST THE ESTIMATED MK38 BILLION KWACHA, AAAA MRA YAYETSETSA. KUMAYAMIKIRA INU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  4. Dr Mrs Ben Phiri Mutharika says:

    Kamoto koma tribalism nde he is a perfect gladiator

  5. Mrs SAM Dalitso says:

    Mufa agglutination inu.. Mugabe nonchalant. Ralph is going nowhere. Go ask your gods. Tell them are failures. Nsanje bwanji.

  6. abinte says:

    u pple do u expect mr kamoto to go n collect revenue? dont b stupit.anyamatawo r the ones failing to collect revenue. can u imagine kuti some minibus amayenda opanda MRA document? count them? u wil see dat we r losing money.go to these shops the bulundis.nigerians.sapeleka sonkho umenewu.leave kamoto out of this.

  7. The Truthful One from the West says:

    Those who say Mr Kamoto is an effective CG are lying. Mr Kamoto has no track record of success after working for more than 20 different organisations. MRA is failing because Kamoto does know what to do. He has to go. Malawi is bigger than Kamoto. His failure to meet revenue targets is causing govt to borrow thereby pushing interest rates up.

  8. Galu WA galu says:

    Mr Kamoto is not a problem. Tax collectors in borders and airport make deals with people to defraud the gov. Put tough security can a clerk build such big houses children go to Kamuzu Acadamy? Come on

  9. chejaali says:

    Kamoto umkangova nkhani ndi imeneyi sudati ulakalaka kumapanga top up ndi zako kuti ma bwana akowa azikagawana bwino

  10. he deserves to be a boxing promoter not otherwise.

  11. Tawonga Phiri. says:

    It very unfair to attribute the low collection to Ralph Kamoto. Mr Kamoto is one the two best CGs MRA has had after Mr James Mansfield Mpeta Phiri. Mr Kamoto is a professional man who gives space to his officers to work to the best of their ability.

    The failure to meet the target is a collective failure by all officers of MRA especially the Commissioner of Customs, Mr Shadric Namalomba and his officers. Mr Namalomba promoted his kinsmen from the belt and subsequently demotivated other customs officer.

    Keep up the good work Mr Kamoto as you bring back professionalism into MRA which had been very political after Mr Phiri left.

  12. Abale samalani says:

    Kamoto yemweyo

  13. Nellie Maitiro says:

    I agree with all those who say there’s absolutely nothing wrong with Mr. Kamoto-you cant expect a shrinking economy to collect those unrealistic revenues. I would actually commend Mr. Kamoto for being able to milk a scrawny cow!

  14. john says:

    why cant govt replace kamoto? he is a complete failure.

  15. milazi says:

    Yo patsogolo malawi adzachita bwino sitiwa liti koma mulungu adziwa

  16. mona says:

    Mpoto I like your comment indeed what mra collect is enough, but mismanagement of funds starts at mra procurement of cars to all managers
    Then government overstating projects so that zinazi zilowe mmatumba mwawo.
    A road project can have a real value of 2 billion but government will connive with the supplier to charge 5 billion, cholinga 3 billion ilowe mmatumba mwawo chonchi ndalama za misonkho collected zingakwane
    Under dpp government malawi will always remain poor and pathetic, imagine the whole president organising a trip with his foolish ministers and cadets to go to lumbadzi police station and paint a cell a kuti ” nyapaphi was here” chonchi dziko lingatukuke Anzanga?
    We talk of reforms but dpp is not reformed Zinthu ziyenda bwanji ayi ndithu inu a demonic promotion party ( dpp) 2019 siifika mukhala muli ku opposition, mulungu akulangeni nonse.

  17. mona says:

    Koma galu Iwe Goodall gondwe ufuna mra atolele zingati, ufuna atifinye mpaka tituluke magazi, ndiwe munthu woyipa.
    Ku Malawi kuno vuto si mra koma
    1. Abuse of tax payers money imagine the whole president going to a gala dinner for two weeks and sleeping in an expensive hotel
    2. 92 billion munadya inu a galu a dpp ija sibwezi pano tili Pena ife a malawi, onani lero miseu yoipa, njala yalowa
    3. Mugulitsa msb yoti value ndi 45 billion inu Mugulitsa 4.7 billion pali nzeru pamenepa
    Inde bank last year yapanga profit ya 2 billion inu mufuna mugulitse bank iyi kwa Mulli at 2 billion n zoona zimenezo
    4. Ndalama za kayelekera sizioneka ngakhale paladin ikungotibera uranium wathu
    5. Mulephera kulipira Ma suppliers a farm input subsidy program ndalama zawo kodi simudziwa mupeleka chiopsyezo Cha ntchito kwa a malawi ogwira ntchito mmenemo since liquidity ya Ma supplier ivuta
    6. A galu inu mungogawana misonkho yathu yet ife tikuvutika koopsya, imagine bingu kumpatsa mbava Mulli 160 million from escom funds ife tikulira ndi Ma bill a escom
    7. Kuba ndalama za nac in the end global fund pulling back their financial support, leading to job losses at nac and MAalawi government refunding billions of tax payers money to global fund

    A galu inu a dpp mmatiganizira Koma ndinu a satana and not worthy to rule this country dikilani mulungu alanga yense wakuba misonkho yathu
    Mulibe nzeru

  18. namulepe says:

    Kamoto is a terrible flop. Instead of putting in place creative tax collecting measures, he is always busy hunting for enemies – real and imagined – from within and outside. He is busy pursuing people who fought high and low for the change of regime for him to be where he is. What a tactless fool. His days are really numbered, and the sooner we bring back Ntingwi the better. Kamoto is a failed trial…

  19. Malawiana says:

    So this MRA Boss spent two weeks in Ethiopia attending the COMESA Meeting which had nothing to do with tax issues when his organisation is failing to tick?

  20. mbuyun says:

    We are not surprised. Malawi will one day collapse if it continues to be led by headless leaders. Tidyeretu type. Having the so called donor supported budget or not, no significant difference to the lives of most Malawians. Our neighbours are better inmany areas than us. If you stand at songwe bridge for example you can tell not by language that this one is from Malawi.

  21. Mr Ibu says:

    How do they expect to collect more money when people are harassed, tortured and bullied by the MRA officials when importing goods? I for one stopped importing goods and I will not do it again because of the attitude of MRA officials. Currently am doing business that does not attract the interest of these heartless officials like farming, selling thobwa and zigumu.

  22. nana says:

    MRA is not a failure

  23. ben says:

    What MRA is collecting is commendable it is time Government stops giving unrealistic targets, as Malawis economy is too small. Government should cut expenditures to match collection revenue

  24. Good Men says:

    This economy needs good leadership. That is a lot of money collected to change things in this country

  25. Kulibe kantu says:

    This is a lot of money looking at the size of the economy. Don’t punish the people. Just manage the funds well.

  26. Adzalanga says:

    Who says the collected revenue is too little to support government operations Iwet Goodall Gondwe utisamale ngati mwapangana zotiberanso ndalama ndi Mtchona wakoyo munya katsala tingolodzanapo apa zopusa eti Stop stealing our taxes zamachende basi Fotseki

  27. Chinthumwananga says:

    If only Masangwi, the smuggler, and his DPP buddies were to be paying taxes MRA would not under collect.

  28. All is well with Malawi. God gave us all the blessings! But satan the father of lies, thief and killer want to blindford you and think Malawi is not and can not have/get money for being against a person blocking money misuse, thefty and lies.
    But God Jehova the Creator is seing you.

  29. All is well with Malawi. God gave us all the blessings! But satan the father of lies, thief and killer want to blindford you and think Malawi is not and can not have/get money for being against a person blocking money misuse, thefty and lies.

  30. Mpoto says:

    I think we have a lot of money in this country. For MRA to be given such targets and for it to meet 97%, its a joke to say it is failing.

    The MK344.03 billion collected by MRA is enough to run the country for a year. The only problem is that we have headless people running this country. We will chop your hands if you continue stealing our money.

    I should be honest with you all my fellow citizens. I have not seen a difference between the period of plenty due to donor support and the period of leanness due to lack of donor support. Its the same.

    I hate these mijantcha and nkhanga who pose to love the northerners yet still they oppress them with the miller’s stone.

    God bless Nyika and Banyika.

  31. Pata phiri says:

    The problem is also with customs as they r too harsh anybody importing legally the goods r uplifted by double the values so importers have lost interest n stopped importing upto 75% decline in imports already

  32. Nanchidwe says:

    Ku Police Chimozimozi, Favouritism, Nepotism, Regionalism. Kuikana Mma Branch A Bwino Pachibale Or By Same Region eg: Zachitika Ku Traffic Branch Posachedwapa. Ndie Muziyembekeza Enawo Kugwira Ntchito Molimbika? Muiwale Ndithu Kuchosa Ma Traffic Aid Mcholinga Chofuna Kuikamo Abale Anu.

  33. Mhesha says:

    The economy is too small for the demanding revenue targets. Don’t victimise anybody. Officers are working hard and please don’t create negative stories here.

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