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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Boyd Kilembey
Guest
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… Read more »
A nyima
Guest

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.

mlomwe2
Guest

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

Dr Mrs Ben Phiri Mutharika
Guest
Dr Mrs Ben Phiri Mutharika

Kamoto koma tribalism nde he is a perfect gladiator

Mrs SAM Dalitso
Guest

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

abinte
Guest

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.

The Truthful One from the West
Guest
The Truthful One from the West

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.

Galu WA galu
Guest

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

chejaali
Guest

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

jajaa@ yahoo.com
Guest

he deserves to be a boxing promoter not otherwise.

wpDiscuz

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