Malawi Revenue Authority (MRA) has attributed the delay in civil servants salary payment as one of the challenges affecting its efforts in collecting Pay as You Earn (PAYE) tax.
For the past two months, government has been delaying in paying civil servants thereby delaying in remitting taxes to MRA.
The revenue-collector revealed in its monthly revenue performance report that PAYE collections have gone down by at least 23 percent and 8 percent from May and June projection respectively, standing at MK7.10 billion.
However, this is 21 percent higher than the cumulative projected for the fiscal year standing at MK90.5 billion.
In the report, MRA says it has collected gross tax revenue of K32.8 billion for June, 2014 the amount which is slightly less than K35.5 billion as was projected.
In May MRA managed to exceed the target of by 5 percent after collecting a total of K30.8 billion.
The cumulative gross tax revenue for the 2013/ 14 fiscal year stands at K393.4 billion 14 percent higher than the projected K345.1 billion.
The report generally shows a lot of under-performance in various tax categories, most of which have registered collections below projections for the month under review.
Meanwhile, MRA has beat its annual revenue target by collecting K393.46 billion during the 2013/14 fiscal year beating its projection of K345.11 billion by 14 percent, the tax collector’s outturn indicates.
In the 2013/14 fiscal year, total tax revenues was projected at K328.1 billion while non-tax revenues were estimated at K35 billion while total revenues and grants for the year were expected at K603.4 billion with domestic revenues pegged at K363.1 billion. Donors were expected to contribute K240.3 billion as grants.