MRA beats 2016/2017 target by K42.5bn

The  2016/2017 fiscal year has ended on a high note at Malawi Revenue Authority (MRA) with K767.61 billion taxes collected against a target of K725.05 billion, beating the target by K42.56 billion.

The last month of the year, June 2017, has registered a collection of K74.11 billion, up by K7.93 billion against the targeted K66.18 billion.

Cumulatively, taxes from Income and Profits total K383.19 billion. Under this category Non Resident Tax bagged in K25.07 billion against a target of K9.19 billion; Fringe Benefit Tax K8.98 billion while PAYE was K199.31 billion.

Valued Added Tax collections was K237.73 billion up from the projected K208.38 billion; Excise duties K70.10 billion against a targeted K58.03 billion.
Import duty recorded K69.82 billion collection up by K11.41 billion from the projected K58.20 billion.  

The Authority disbursed tax refunds amounting K17.46 billion which is K6.81 million more than the expected amount.

Following the development, MRA Commissioner General, Mr. Tom Gray Malata has expressed gratitude to taxpayers in the country for voluntarily paying their due taxes.

“MRA would like to wholeheartedly thank all our valued taxpayers for voluntarily paying taxes during the 2016/17 financial year. 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 CG said.

He said 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.

“As a responsible tax administration, we do not take your contribution for granted. We urge you to continue honouring your tax obligations on time and in full in the current 2017/18 financial year,” Mr Malata said.

He called on taxpayers to sustain their commitment in paying tax in the new 2017/2018 financial year as Government has assigned the Authority  to collect K918 billion in taxes.

The Authority is encouraging all entities and individual taxpayers who failed to pay taxes as they fell due to visit any nearest MRA office to be assisted on resolving any challenges regarding to taxes.

BY HENRY MCHAZIME