MRA encourages MSMEs to register for Presumptive Tax

Micro, Small and Medium Enterprises (MSMEs) in the country have been encouraged to register for Presumptive Tax so that they are able to positively contribute to national development by paying taxes based on their annual turnover.

The call was made recently in Bangwe by Hlupikire Mshali, Manager Block Management System at the beginning of a two-week sensitization programme for MSMEs that operate their businesses in various trading and business centres in Blantyre.

Mshali observed that there are many people that operate businesses in different parts of the country but are not registered for tax because they do not have adequate information and knowledge on taxes.

On this note, she said that following the amendment of the Taxation Act of 2021, Government has made a provision that all MSMEs in the country whose turnover in a year does not exceed K12, 500, 000 should register for tax and pay taxes through quarterly installments based on their annual income.

‘’If all MSMEs are registered for tax, the Government will collect more revenue that will be used for the provision of medicine, buying of learning and teaching materials, drilling boreholes, cheap fertilizers as well as the construction of schools, clinics, roads and bridges, among others,’’ she stressed, adding that was why MRA was sensitizing MSMEs on the tax.

In his response, the Chairperson of Business People of Bangwe, Frank Friday, commended MRA for engaging them on Presumptive Tax and informed the Authority that his members will register for the tax and pay taxes in line with the law.

Bangwe Business Chairman, Frank Friday, pledging his total support towards MRA initiatives

He added that the tax was easy to operate because one would not require the assistance of an accountant which is very expensive.

In her presentation, Thokozani Chiwaya, Taxpayer Education Specialist, drilled the enthusiastic participants on how to register for the tax, applicable rates for the tax, when and where to submit tax returns and pay taxes when due and penalties for failure to comply with the law.

Meanwhile, MRA has sensitized business people on the tax in different trading and business centres of Blantyre such as Bangwe, Chilobwe, Zingwangwa, Nancholi, Chazunda, Kachere, Machinjiri and Chigumula where the attendance has been impressive.

After Blantyre, MRA is set to sensitize businesses on Presumptive Tax in all the corners of the country with a view to educate and encourage them to register for tax as one way of broadening the tax base and increase revenue collection.

By Vanessa Mkwate