Malawi Revenue Authority (MRA) says during the fiscal year just ended, the tax collecting body has collected K767.61 billion against a projection of K725.06 billion, registering a surplus of K42.56 billion.
MRA Commissioner General, Tom Malata said all tax lines namely Corporate Tax, Pay As You Earn, Withholding Tax, Provisional Tax, Value Added Tax, Import Duty and Excise Duty among others performed well above their projections.
Malata said this in his appreciation report dubbed Voluntary Tax Compliance.
“The exceptional performance is on the account of voluntary tax compliance by taxpayers who honoured their tax obligations by paying taxes due in full and on time. Taxpayers also responded well to various modernization initiatives which MRA has been championing to improve taxpayer services and reduce the cost of compliance.
“Companies, individuals and the general public were also supportive towards our enforcement programmes to curb tax fraud, tax evasion and smuggling. The revenue collected has helped the Government to run essential services such as provision of national security, buying medicines for hospitals and paying salaries for doctors, nurses and teachers in public facilities.
“With these domestic resources, Government has also ably maintained roads, bridges while constructing hospitals, the much needed classroom blocks in various areas as well as providing farm input subsidies, just to mention a few,” said Malata.
He further said MRA as a responsible tax administration, does not take such contribution for granted and has since urged people to continue honouring tax obligations on time and in full in the current 2017/18 financial year.
He added; “The new financial year presents an exciting and challenging terrain as Government has requested us to collect K918 billion in taxes. We believe this is attainable based on the commitment and trust you, our valuable taxpayers, have shown in the just ended year.”
Malata said the Authority is aware that there are some businesses out there that, due to some genuine reasons, failed to pay taxes in due time.
He, therefore, encourage them to visit any nearest MRA office so that MRA can address the challenges to enable them discharge their tax obligations as required.
Malata has since assured the public that MRA would continue to handle tax affairs with dedication, professionalism and integrity.
Malawi’s 2016/2017 national budget was K1.149 trillion while the 2017/2018 national budget is worth K1.3 trillion.