Tax revenue target at K1.528 trillion

The Malawi Revenue Authority (MRA) will be required to collect K1.528 trillion in tax revenues in the 2022/23 financial year.

Finance Minister Honourable Sosten Gwengwe announced the new revenue target on Friday 18 February 2022 when he presented the 2022/23 budget.

The new revenue target represents an increase of about 47 percent from the 2021/22 revenue tax target, which was set at K1.044 trillion. This means the revenue target has increased by about K500 billion.

Honourable Gwengwe said total revenues and grants for the 2022/2023 fiscal year are estimated at K1.956 trillion representing 17.2 percent of GDP.

“Domestic revenues are estimated at K1.636 trillion, of which tax revenues are estimated at K1.528 trillion while other revenues have been estimated at K107.8 billion,” he said.

He pointed out that resource mobilization to support the 2022/2023 budget is anchored on enhancing tax administration and automation of collection of non-tax revenues through improved taxpayer services, enforcement and compliance.

Gwengwe said the Ministry has launched Malawi’s Domestic Revenue Mobilization Strategy (DRMS), which covers the period 2021 to 2026.

“It outlines some of the tax and non-tax policy measures that Government intends to implement to increase domestic revenues by at least 5 percentage points of GDP in the 5 years of its implementation,” he said.  

The Finance Minister said total expenditure for the 2022/2023 fiscal year is projected at K2.840 trillion, representing 24.9 percent of GDP.

He said recurrent expenses are estimated at K2.019 trillion of the total expenditure, representing 17.7 percent of GDP and 71.1 percent of the total expenditure.

“Development expenditure is programmed at K820.67 billion, representing 7.2 percent of GDP and 28.9 percent of total expenditure,” he said.

Gwengwe said the development expenditure is composed of K580.9 billion foreign resources and K239.7 billion domestic resources.

By Wadza Otomani