A published Malawi Revenue Performance Report for December 2014 says total tax collected amounted to K38.42 billion.
The collection represents a 6.1 percent surplus or K2.2 billion more than the projected revenues of K36.2 billion for the month.
This development means gross tax revenues collected for the first half of 2014/15 fiscal year, is at K228.93 billion above K226.86 billion.
“The positive revenue performance for the first half of the year and the month under review reflected the impact of improved tax administration, changes in government pay structure and macroeconomic environment,” part of the report reads.
Taxes on income and profits totalled K17.44 billion. This was K3 billion above the projected figure of K14.44 billion for the month against a backdrop of strong performance in Pay As You Earn (PAYE) and corporate tax despite an under collection in Non-Resident tax.
PAYE stood at K11.12 billion compared to a lower projection of K9.74 billion on account of delayed salary payment for part of the civil service. Taxes accruing to the delayed salaries were remitted in December 2014.
Corporate Taxes collected amounted K2.71 billion. This was K1.42 billion or 109.67 percent above the target of K1.30 billion for the month.
“Whereas both company assessments and provisional tax registered positive growth, the major impetus to growth was company assessments, which grew by a massive K1.12 billion over the projection of K334.38 million on account of improved enforcement. Similarly, provisional tax registered a growth of 31.28 percent over its December target of K961.04 million,” reads the report.
Withholding Tax amounted to K3.12 billion, 9 percent above its target of K2.86 billion. The good performance reflected a favourable business climate that prevailed in the run up to the festive season.
K12.35 billion was collected under Value Added Tax (VAT). Domestic VAT recorded a deficit of K401.61 million whereas import VAT over performed by K81.49 million.
Import Duty was K4.76 billion above its target of K4.42 billion. This collection was a result of pre-festive season stocking by most businesses.Follow and Subscribe Nyasa TV :