MRA to start collecting mineral royalties

MRA to start collecting mineral royalties

The Malawi Revenue Authority (MRA) will from 1st April 2024 start collecting mineral royalties. This follows the amendment of the Mines and Minerals Act and the Taxation Act in 2019.

The change in the law has resulted in the transfer of the collection of the mineral royalties from the Department of Mines to MRA. Mineral loyalties are payments made by mining companies to the Malawi Government which owns mineral rights in the country and the mineral royalties are calculated as a percentage at 5% of the value of extracted minerals.

In view of this, the Authority has been engaging various mining companies in Malawi to sensitize them on the transfer of the collection of mineral royalties to enable them understand the new law and what is expected of them.

Principal Revenue Officer in the Ministry of Finance and Economic Affairs, Leonard Mushani, speaking at one of the meetings in Lilongwe, said that the transfer of the mandate of collecting mineral royalties will enhance efficiency.

‘‘The Ministry of Mines has been collecting mineral royalties but there have been challenges as far as capacity is concerned and that is why the responsibility has been transferred to MRA,’’ he added.

MRA Revenue Officer, Allan Nyalo, in response said mining companies would be required to conduct a self-assessment and file a royalty return upon producing minerals.

He went on to say that the royalty return is a declaration of values and volumes of the minerals should be submitted to the Department of Mines.

‘‘Mining companies have to determine if the produced minerals are for local use or for export. If the minerals are for local use, a mining company would be required to file the royalty return processed by the Department of Mines to MRA through SAS II or Msonkho Online,’’ he said.

Nyalo went to say that if the minerals are not for local use, a mining company is required to declare interest to the Department of Mines for export.


‘‘In this case, the Department of Geological Surveys will then evaluate the mineral royalty base to determine value and volume, issue a certificate of inspection and seal the container. The Department of Mines will then process a royalty return and file the processed return to MRA through SAS II or Msonkho Online,’’ added Nyalo.


Meanwhile, MRA is developing an ICT system to facilitate the payment of mineral royalties through e-Payment platform.






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