Business people want MRA to open voluntary tax compliance window

Business people in the country are demanding that the Malawi Revenue Authority (MRA) opens the voluntary tax compliance window in view of the raging Covid-19 pandemic.

Kapoloma: No immediate plans for VTC

However, MRA is downplaying the calls from the business sector.

Some revenue experts and business people say the opening of the voluntary tax compliance window would boost tax revenue especially now as the Covid-19 is affecting revenue collection.

Chief Executive Officer of the Institute of the Chartered Accountants in Malawi (ICAM) Francis Chinjoka Gondwe recently told Capital FM that there is a threat that the 2020-2021 budget might fail to deliver because of the diminishing revenue.

Gondwe recommended several ways that could boost revenue collection, including reopening the window to allow tax-payers settle tax arrears without penalties.

However, MRA’s Head of Corporate Affairs Steve Kapoloma said that they do not have plans to reopen the window, arguing businesses were given enough time to utilise it.

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Kudu hunter
Kudu hunter
5 months ago

This is a government run outfit to steal from poor malawians more so small businesses and intimidate and use threatening behavior the mra is full of corruption and worse in these trying times when small businesses are bullied into paying ridiculous amounts of taxes mra bandits think they are untouchable

Kat
Kat
5 months ago

what kind of a selfish organisation is MRA. Whilst governments worldwide are working to make sure businesses do do collapse during this hard time, through all sorts of incentives, ours is hell bent on killing the private sector. If you kill these businesses, where will you get the taxes from

Anon
Anon
5 months ago
Reply to  Kat

As someone who has lived in Europe for a decade in a high tax regime, MRA is the devil. There are no tax advantages in Malawi, only penalties. MRA is like Hell. Nothing nice about it, only punishment. Why can’t MRA operate with fairness and show some benefit to Malawian businesses at all? Why does government expect MRA to make them money to blow? MRA is there to collect taxes, not to punish us to fund the government. We need a mindset change and this new President is not helping.

Shadreck
Shadreck
5 months ago

As usual, MRA is against companies, against development and against investors… All that MRA has achieved is to make Malawi poorer and poorer

Wilson Nkwanda
Wilson Nkwanda
5 months ago
Reply to  Shadreck

Taxes should not be used to punish taxpayers. If companies are collapsing due to the pandemic, where will government get money to operate from? MRA must an understanding organization, companies are struggling. Some companies are paying their staff with 50% and yet nobody in the civil can agree his/her salary to be slashed. The Tax Compliance Window (TCW) with all fines and penalties removed and let the taxpayer remit initial taxes. If business community requests, then MRA doesn’t listen, then businesses closing, who loses most? It’s government anyway. People pay taxes because it their civil duty and legal duty to… Read more »

Koka
Koka
5 months ago
Reply to  Shadreck

If there is one organisation which needs complete overhaul, it is MRA. I don’t understand why the previous and current governments don’t understand that MRA with its existing practices has always been a threat to the economy and hence needing restructuring and overhauling. Recently, I once had a conversation with one MRA senior guy who admitted that the organisation is a mess and needs a serious review on how it conducts business in particular on how it treats taxpayers. The current tax regime does not instil any confidence and willingness on the part of taxpayers to pay taxes. In fact,… Read more »

Anon
Anon
5 months ago
Reply to  Koka

The VP spoke about a tax holiday, where is it? The VP spoke about a tax break, where is it? The VP spoke about a day where you can import goods tax free, where is it?
And someone explain to me what is the purpose of paying duty, excise, and VAT? They’re adding tax on tax on tax. That even, when you buy goods, but the time they get here there is a devaluation. So we pay tax on tax on tax on devaluation. This is ridiculous!

Anon
Anon
5 months ago
Reply to  Koka

Oh and they will uplift the value of the goods saying it’s too cheap, just because you’re not black Malawian. So if you’re a good business man and source goods cheaper than your competitors, you get hit in your own country. This is absurd. No wonder Malawi is so damn poor. We are one of the poorest countries in the world and remain so. In 1991 we had the same GDP as Singapore. Look where Singapore is today, and look where we are. We can’t even feed our own country and need to food, even oil! Can you believe we… Read more »

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