MRA, TNM partner for Mpamba tax payment

MRA, TNM partner for Mpamba tax payment

The Malawi Revenue Authority (MRA) has partnered with TNM Mpamba Limited to enable electronic tax payment on the platform as a way of improving efficiency in tax compliance and collection.

The partnership enables registered taxpayers with Payment Registration Numbers (PRN) and are registered on Mpamba to pay their taxes, both Domestic and Customs  duties, through the platform. 

MRA e-Payments Project Manager, Tiya Somba-Banda said the payment of tax through Mpamba would enhance tax compliance, reduce cost of compliance and improve revenue collection, which would ultimately spur socio-economic development.

He said as a tax administration, MRA has been implementing various modernisation projects like e-Payments, ASYCUDA, Electronic Fiscal Devices (EFD) to enhance revenue collection.

“The introduction of Mpamba would complement our efforts to collect more tax revenue for socio-economic development. Research has shown that tax authorities that allow tax payments to be made using mobile money report higher revenue collection,” said Banda.

He said countries Mauritius and Tanzania reported increases in tax revenues after adopting mobile payment facilities.

“The adoption of mobile money tax payments has resulted in less tax avoidance, with users who had no history of paying taxes starting to pay taxes for the first time. We are optimistic that the introduction of Mpamba as a mobile money platform to collect tax revenue would improve tax compliance and enhance revenue collection,” Somba Banda said.  

On his part, TNM Mpamba General Manager Chikhulupiliro Mphatso said the introduction of Mpamba as a platform for tax payment underscores the company’s commitment to deploy mobile phone network technology in providing solutions in the national payments ecosystem.

 “We are aware that in the wake of Covid-19, electronic payments have proven to be effective to stem the spread of the pandemic and TNM Mpamba will continue to innovate to keep customers safe,” said Mphatso.

He said Mpamba will afford taxpayers security, convenience, availability, affordability and cost-effectiveness as taxpayers would save time and money travelling to settle their tax obligations.

“To pay tax, Mpamba customers need to dial Dial *444# then Select 4 (Payments), Select 8 (Government payments), Select 1 (MRA Tax), Enter PRN, thereafter Enter PRN Amount, Confirm PRN Details and Enter PIN,” said Mphatso.



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