Last Updated: 17 January, 2018 - Print
MALAWI REVENUE AUTHORITY PROFILE
The Malawi Revenue Authority (MRA) is an agency of the Government of Malawi responsible for assessment, collection and accounting for tax revenues. MRA 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.
The MRA is overseen by a Board of Directors and headed by a Commissioner General who provides leadership, strategic direction and control in the operations of the authority. In pursuance of these duties and to accomplish the mandate of MRA, functional divisions and Divisions have be established. MRA has three revenue divisions of Customs Division (Imports), Customs Division (Exports) and Domestic Taxes Division. It also has support divisions namely Finance, Administration, Human Resource and Organisation Development, Legal Services, Information & Communication Technology (ICT), Tax Investigation, Policy Planning & Research, Corporate Affairs, Internal Audit, Supply Chain Management, Internal Affairs, and Modernisation. The Customs Division (Imports) and the Customs Division (Exports) Divisions administer and enforce the Customs and Excise Act. The divisions collect Import duty, Export duty Import Excise, Import VAT and trade statistics. They also facilitates trade and protects the community from entry and exit of restricted and prohibited goods. The Domestic Taxes Division Division administers and enforces the Taxation and VAT Acts. The Division collects direct Income Taxes from individuals and corporations. These are in form of Pay As You Earn (PAYE), Provisional Tax, Fringe Benefit Tax and Withholding Tax. The division also collects domestic VAT and domestic excise. MRA has over 30 stations spread across the country.
To maximise revenue collection through fair, efficient and transparent administration of Malawi tax and Customs laws while providing high quality service to all taxpayers.
To be a modern, professional and efficient revenue authority that provides first class service to all stakeholders
As the Malawi Tax Administration, we wish to establish ourselves as a responsible organization, providing quality service to the Malawi nation that is based on: Professionalism and service excellence We are committed to the highest standards of achievement obtainable through dedication. We will provide a relevant and timely service to all our clients and provide information to which a person is entitled promptly and in an easily understood form. We will make sure it is accurate, current and complete. Equity and fairness We will treat all people fairly and apply the law consistently and responsibly as well as administer all the requirements reasonably. We will base actions, decisions and advice on consideration of all relevant facts, and implement policy and programs equitably. Integrity and trust. Our organization’s foundation is the integrity of its people. We will, therefore, be honest with our clients, colleagues and the community in general and we will not tolerate unethical behavior. Efficiency and accountability We will achieve results through the best use of the organization’s financial, physical and human resources. Teamwork We will develop and foster mutually beneficial working relationships that balance our hopes, confidence and goals for the future. Courtesy and respect We will treat our clients, colleagues and the public with dignity, courteousness and with utmost respect to their rights, responsibilities and aspirations.
FUNCTIONS OF THE MRA
The main functions of MRA as stipulated in the MRA Act are: Assessment, collection receipt and accounting of specified revenue Administer and enforce the or the specified provisions of the laws Promotion of voluntary compliance to the highest degree possible Improvement of the standard of service given to taxpayers with a view to improving efficiency and effectiveness and maximizing revenue Counteracting fraud and other forms of fiscal evasion Advising the minister of finance on matters of revenue policy and administration and collection of revenue Subject to the stated tax laws, performing any other duties related to revenue as the Minister of Finance may direct
REFORMS IN TAX ADMINISTRATION
Since inception the Authority has continuously instituted reforms aimed at improving the efficiency and effectiveness of MRA so as to increase revenue collection. Reforms are also aimed at promoting voluntary tax compliance to the highest degree possible to maximise revenue collection and decrease the cost of collecting revenue. Three notable reforms are the integration of Income Tax and Value Added Tax (VAT) divisions into Domestic Tax Division which also administers Domestic Excise, the launch of the Large Taxpayer Office (LTO) and the introduction of Destination Inspection, Risk Management Division and Post Clearance Audit (PCA) in Customs and Excise divisions.