A tax expert has doubted revenue collectors, the Malawi Revenue Authority (MRA) can write off tax arrears debt, saying this is illegal.
The expert, who did not want to be named as he works for the public tax collector, said this in view of the request by state controlled Malawi Broadcsting Corporation (MBC) to write off K4.5 billion tax arrears.
Director of News and Programs at MBC Geofrey Kazembe on Thursday lobbied legislators to convince the government write off the tax arrears.
However, the tax expert said the law is very clear on the issue that no tax arrears can be written off.
“Probably what the government can do is to pay the tax arrears on behalf of MBC,” said the expert.
The revelation that MBC owes MRA K4.5 billion in tax arrears has shocked the nation as the revenue collector has rushed to close private media institutions with tax arrears much smaler than that of MBC.
MRA has closed down Times Group on several occasions on tax arrears reasons.
Chairman of Media, Informaton and Communicaton of parliament Sam Kawale threw out Kazembe’s request for MPs to lobby the government to write off the MRA debt.
“That is an administrative issue beyond the scope of our committee,” he said.
Commissioer general of MRA Thom Malata said his organisation is in talks with Treasury to see how best to recover its money.