MRA collects K355 billion in first quarter
The Malawi Revenue Authority (MRA) collected K355.11 billion in the first quarter of the 2022/23 financial year, representing a revenue performance of 99.85 percent.
Commissioner General John Biziwick announced the revenue performance for the first quarter, April-June 2022, at a media briefing at Msonkho House in Blantyre on Wednesday July 7, 2022.
He said MRA collected K130.5 billion against a target of K124.5 billion in April 2022, beating its target by K5.9 billion and registering a year-on-year revenue growth of 22.37%.
However, in May 2022, MRA missed its target by K9 billion after collecting K104.6 billion against a target of K113.6 billion but yet registered a year-on-year revenue growth of 20.11%.
In June 2022, MRA surpassed its target by K2.5 billion after collecting K119.9 billion against a target of K117.3 billion, representing year-on-year revenue growth of 10.65%.
The Commissioner General highlighted a number of factors that affected revenue performance in the first quarter. On the positive side, he said such factors include the following;
• Revision of the PAYE bracket which improved PAYE remittances in May and June 2022
• Increase in the value for duty purposes resulting from the devaluation of the Malawi Kwacha
• The commencement of Advance Income Tax from May 2022 which has performed well above the target
• Increased enforcement through Block Management System, debt collection and audits
However, Biziwick mentioned some factors that impinged on revenue performance such as exemption of VAT for water and cooking oil that affected VAT collection, continued effects of forex shortages affecting Import duty, VAT and Excise tax
‘’We also increased enforcement through Block Management System (BMS), Advance Income Tax (AIT), the Blantyre Inland Examination Centre (BIEC) and tax audits to enhanced revenue collection,’’ he elaborated.
He said the following tax revenues were collected through increased enforcement;
Block Management System (BMS) K1.41 billion
Advance Income Tax K2.11 billion
Blantyre Inland Examination Centre K110.82
Large Taxpayer Audit K1.44 billion
Post Clearance Audit K141.95 billion
The revenue target for July 2022 is K141.92 and it represents a revenue growth of 24.76% from the same period last year when the revenue target was K113.75 billion.By Wadza Otomani