Malawi Revenue Authority (MRA) has effected a voluntary compliance window (VCW) to allow taxpayers that have been unable to settle their tax obligations to pay without interest or any charges.
But business captains, while commending the initiative, said yesterday the authority should have gone further to include freeing up vlue added tax (VAT) refunds.
The VCW, which MRA has implemented with immediate effect, follows President Peter Mutharika’s directive on Saturday for MRA to open up a six-month voluntary tax compliance window to allow tax payers with arrears to settle their tax obligations in installments without penalty.
MRA commissioner general Tom Malata said at a media briefing at Msonkho House in Blantyre yesterday that the revenue collection body will implement the VCW up to October 31 to provide relief to individuals and organisations to regularise their tax affairs without suffering penalties.
He said other than the VCW, MRA is also looking
at other ways and means of cushioning taxpayers in view of the coronavirus (Covid-19) pandemic.
“Currently, we are still discussing considerations depending on the gravity of the coronavirus attack on the county so we will be coming in with further measures where possible,” Malata said.
Comme n t i n g o n t h e development, Employers Consultative Association of Malawi (Ecam) executive director George Khaki said although the waiver may assist companies, it does not go far enough to aid challenges faced by businesses.
I n d i g e n o u s B u s i n e s s Association of Malawi (Ibam) president Mike Mlombwa commended MRA for the move, but asked for more waivers, saying businesses, especially small-scale, are struggling.
To be considered for the VCW, taxpayers are required to complete a 2020 VCW application form available in all MRA offices and on MRA website