Malawi Revenue Authority (MRA) says it collected K4 .65 billion in tax revenue through its ongoing six-month Voluntary Compliance Window (VCW) the revenue body opened in April this year which closes at the end of this month.
MRA head of corporate affairs Steve Kapoloma told journalists at Msonkho House in Blantyre that compliance window allows non-compliant taxpayers to settle their tax obligations without paying penalties, interest or any charges.
Kapoloma said the revenue body has as of 21st October received over 1,176 applications from tax payers seeking waivers on penalties and interests in order to settle their tax arias.
He further said the revenue body is projecting to collect over K12 ,985 billion once it approves all the application it has received and that the revenue body has currently managed to process only 180 applications.
Kapoloma further encouraged all businesses operators in the country to utilize the voluntary window which gives them an opportunity to settle their tax arias without penalties and in instalments.
“We are excited to see that over 1,176 tax payers in the country participated in the voluntary compliance window and out of these we managed to process about 180 applications. We therefore encourage business operators in the country to utilize the voluntary window before it closes this month end as it offers relief to their businesses”, said Kapoloma.
So far money amounting to about K 2 billion kwacha is expected to be waived during this period of tax voluntary compliance window.
MRA first introduced the voluntary tax compliance window in 2013.
Institute of Chartered Accountants in Malawi and Malawi Confederation of Chambers of Commerce and Industry (MCCCI) proposed the extension of VCW from October 2020 to March 2021 as companies continue to struggle to stay afloat amid the global pandemic.
“Of additional importance, government should pay value-added tax and withholding tax refunds to improve business’ liquidity positions to enable them meet wages and statutory obligations such as taxes,” said MCCC head of business environment and policy advocacy Madalitso Kazembe.
In response, Treasury spokesperson Williams Banda said the window is up to October 2020 only, urging taxpayers to use the current window to sort out their tax obligations.Follow and Subscribe Nyasa TV :