MRA collects K52bn to beat monthly target
The tax collector, Malawi Revenue of Authority (MRA) collected K52.14 billion in the month of July, beating the set target of K52.04 billion by almost K100 million.
According to a published Revenue Performance report, the July collection represents a revenue growth of 27 percent compared to the same month last fiscal year.
MRA has since attributed the positive variance largely on account of Pay As You Earn (PAYE), Fringe Benefit Tax (FBT), Import Value-Added Tax and Dividend Tax.
According to the report, MRA collected a gross figure of K30.72 billion under Income and Profits, representing a surplus of 15 percent over a projection of K26.79 billion, resulted from strong PAYE, FBT, and Non-Resident Tax.
Under PAYE, the revenue collector registered positive variance of 60 percent with a total of K17.66 billion against a target of K11.03 billion.
”PAYE has over performed by such a high margin because of June’s PAYE from government which has been collected in the month of July,” reads the report in part.
Under FBT and Non-Resident taxes, MRA collected total of K1.64 billion narrowly surpassed the monthly projection of K1.63 billion by 1 percent.
However, Corporate Tax fell short of monthly target of K9.83 billion by K925.79 million, representing a 10 percent underperformance.
According to MRA, all tax lines under this category fell short of monthly projections with the underperformance attributed to sluggish performance of the economy.
”Withholding Tax totaled K2.96 billion which was 38 percent below its target for the month. The poor performance is attributed to unfavourable business climate for agriculture as well as the liquidity challenges faced by the private sector. The tobacco market has been characterized by frequent closures due to low prices offered at Auction Market”.
On Goods and Services, a figure of K15.96 billion was recorded, representing a shortfall of 18 percent from a monthly projection of K19.47 billion while VAT underperformed by 10 percent at K12.12 billion compared to its monthly target of K13.40 billion.
”Domestic VAT, which registered a figure of K4.33 billion led to the overall deficit of VAT as it underperformed by 25 percent. The short term, the unfavourable economic conditions which led to depreciation of the Kwacha benefitted Import VAT while being unfavourable to Domestic VAT through price hikes”.
On Exercise Tax, MRA collected a total of K3.84 billion, 37 percent below the target due to a 23 percent underperformance in Import Exercise exacerbated by a 58 percent deficit in Domestic Exercise while Import Duty totalled K4.53 billion, trailing its target of K5.08 billion for the month by 11 percent.
On other taxes, a total of K920.65 million was collected, 31 percent above the expected level of the month and was propelled by impressive growth in Dividend Tax, Turnover-Tax and penalties.
The performance of Dividend Tax is attributed to more companies paid dividends after the end of their financial years.
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Ayambapo inflating figures just as the former DPP gaffment used to do–to appear kuti ngati zinthu zikuyenda… kaya tiyeni nazoni…
If these figures includes for June Civil Servants PAYE, then it simply means the figures are in deficit and there is no overage atall
its a shame and sour for the poor MRA to depend highly on the PAYE instead of being more emphatic on private sector bussiness.
When you look at the report it is clear that MRA beat its revenue target of July because of the June PAYE that was collected in July 2015. The estimate for July 2015 is K11billion while the actual collection is K17billion. Therefore K6billion(K17bn minus K11bn=K6bn) is June PAYE. So MRA actual collection is K46billion(K52bn-K6bn=K46bn) for July 2015. There wont be double collection of PAYE in August. MRA has therefore started 2015/2016 with a shortfall of K6billion. There is no way PAYE can grow by 60% from 2014/2015 to 2015/2016 fiscal year. If I were Minister of Finance I would base… Read more »
Figure yabodza iyi.
Anakabwereka ndalama ku ,a banki.
This gouvernment is completely bankrupt.
Fuel prices to go up soon, apo bi dizilo petulo palibe.
MRA has collected coz of bonus paid to employees otherwise its not wealth baptizing on every Jim and Jack
first things first,after paying all these theives their wages and salaries for collecting the taxes on behalf of the government. please buy medicine for our hospitals, because thus where we all meet rich or poor,thus when private hospitals are a distance away, don’t let history repeats itself, in my village clinic not even panado thus a shame.
As long as you’re not over taxing Malawians
My K 32,188.00 eish!
MRA has collected more because of loss of value of Malawi Kwacha against Dollar, don’t cheat us. Duty paid this month is more than last month because of the devaluation of our currency, convert this month collections to Dollars, you will see that its peanuts.