MRA beats February tax collection target

Taxes amounting to K44.27 billion have been collected by the Malawi Revenue Authority (MRA) in the just ended month of February 2016, exceeding the target of K43.64 billion. A published report shows that Income Tax, Excise Duties and Value Added Tax (VAT) were the tax lines that contributed to the performance. VAT was at K 15.05 billion against a set target of K14.93 billion. The collected K20.37 billion of income and profits tax exceeded the month’s projection by K51.76 million. Excise duties amounting K4.05 billion were 17 percent above target.

The performance has been attributed to increased enforcement efforts by MRA and improved levels of taxpayers’ compliance. MRA’s Deputy Director Corporate Affairs Steven Kapoloma has encouraged taxpayers to continue voluntary paying tax to sustain public service funding. “These taxes are for the people of Malawi to use in paying teachers, doctors, nurses, security personnel and officers in public service. Crucial items such as drugs and even construction of roads are procured by tax.

“MRA is therefore grateful to all taxpayers who pay their taxes on time. To those who are always reluctant, we urge them to change their approach in order to avoid the penalties and fines that are there to counter complacency,” said Kapoloma.

Total tax revenues so far collected from July 1, 2015 to February 29, 2016 amounts to K373.41 billion, representing a 98 percent of collection. This is against the period’s target of K382.59 billion.