The Malawi Revenue Authority (MRA) has signed a Memorandum of Understanding (MoU) with Technical Entrepreneurial and Vocation Education and Training Authority (TEVETA) mandating MRA to start collecting Tevet Levy.
The Authority will start collecting Tevet levy from November 1 2015. The two parties signed the MoU at Msokho House in Blantyre on Tuesday.
Tevet levy requires employers, both in public and private circles, to remit 1 percent of their total annual wage bills.
This arrangement, according to TEVETA Board Chairperson Gilbert Chilinde, is part of government’s Public Service Reforms.
“During our engagement with the Public Service Reforms Commission in June this year, one of the reforms we proposed to the Commission was the hand over of tevet levy collection to MRA.
“It therefore pleased the President Peter Mutharika to grant the approval for the implementation of various reforms aimed at improving efficiency of service delivery by the TEVET Authority,” said Chilinde during the signing ceremony.
He also said this new collection approach will enhance the levy collection base and enable TEVETA to fulfill its mandate with efficiency and also enable it to concentrate on its core function of regulating and facilitating the provision of technical, entrepreneurial and vocation education and training in the country.
MRA Commissioner General Tom Gray Malata said they are better placed to handle collection of the Tevet levy since they are already in revenue collection business.
Malata said they have got requisite infrastructural and technical capacity to carry out the responsibility along side their core mandate of collecting taxes.
MRA’s presence is spread across the country with over 30 offices.
The MoU has also mandated MRA to collect all due Tevet levies and all other outstanding balances.
Meanwhile, MRA announced that it will only be processing imported or exported goods for those businesses that have a Taxpayer Identification Number (TPIN) obtained from the Domestic Taxes Division.
The Authority’s Customs and Excise Division will effect this new arrangement from November 2 2015.
This means that the Customs & Excise Division will only be clearing goods whose importers or exporters have a valid TPIN.
Malata appealed to the business community and the general public to register for tax and obtain a Taxpayer Identification Number (TPIN).
According to him, Tax registration is for free and can be conducted at any of its Domestic Taxes Offices in Mulanje, Zomba, Mangochi, Balaka, Dedza, Salima, Lilongwe, Mchinji, Kasungu, Mzimba, Mzuzu and Karonga.
MRA is an agency of government responsible for assessment, collection and accounting for tax revenues and it was established by an Act of Parliament in 1998 and was launched in February 2000.
It was formed to improve on the functions previously carried out by Divisions of Customs and Excise, and Income Tax in the Ministry of Finance.
The Authority operates as a government tax administration agency under the Ministry of Finance. The revenue that the Authority collects goes to Government for implementation of various socio-economic development projects such as the constructions of roads, bridges, schools health facilities and provision of social services.
These include national security, provision of salaries for civil servants such as the police, the army, judges, doctors, nurses and teachers.Follow and Subscribe Nyasa TV :