Chiefs in Blantyre have applauded the Malawi Revenue Authority for making every effort to educate Micro, Small and Medium Enterprises (MSMEs) on the implementation of Presumptive. The chiefs made the pronouncements at different places when MRA conducted sensitization meetings with MSMEs in some business and trading centres in the City.
Speaking before a sensitization meeting at Zingwangwa Primary School recently, Chief Zingwangwa assured MRA that he will encourage his subjects to register for the tax and contribute to national development.
He observed that the tax was easy because it does not require the involvement of an accountant adding that one pays depending on their annual income.
Echoing his counterpart’s sentiments, Chief Kachere of Kachere Trading Centre, said he was grateful to the Government for implementing Presumptive Tax that will cover small businesses in his area including lodge, bar and shop operators thereby broadening the tax base.
He observed that for a very long time, many businesses in his area had wanted to register their businesses for tax and be considered for a Tax Clearance Certificate (TCC) but did not have adequate knowledge on taxation.
‘’Now that you have equipped us with the necessary information and knowledge, I assure you that my constituents will be encouraged to register and enjoy the benefits associated with tax registration,’’ he added.
Thokozani Chiwaya drilling the audience on benefits of Presumptive Tax
In his remarks, the Manager Taxpayer Education, Mc Hizzal Kawanga, said
Presumptive tax is a simplified tax for small traders that will enable them to grow their businesses and level the playing field.
“As a business person your vision should be to grow your business and this can only be achieved if your business is registered for tax and bid for public tenders and win big businesses from the Government and public institutions,’’ he emphasized.
He also informed the participants that MRA will engage all MSMEs in all business and trading centres across the country on the tax through interface meetings and the media.
Presumptive Tax is an advance payment of Income Tax for MSMEs whose annual turnover is less than K12, 500,000 during any year of assessment. Previously, the tax was known as Turnover Tax (TOT).By Thokozani Chiwaya