MRA collects K20 billion in February
The Malawi Revenue Authority (MRA) in February collected K20.1 billion (about $51.2m), about K6.8 billion (about $17.4m) below the K26.9 billion (about$69m) collected in the month before, the public tax collector’s tax revenue outturn has shown.
But in February, according to the figures, MRA beat its target of K17.6 billion (about $45.1m) by K2.4 billion (about $6.1m).
Comparatively, the tax body collected K12.9 billion (about $33m) during the same month in 2012, which is an increase of 55 percent.
The February outturn shows that the tax body collected K8.2 billion (about $21m) from income and profits, K8.8 billion (about $22.5m) from goods and services and K2.9 billion (about $7.4m) from international trade.
MRA corporate affairs deputy director Steven Kapoloma on Monday said the monthly targets vary, but added that they are set by the Ministry of Finance.
“The February revenue has not necessarily declined because tax revenue is measured against the set target not against the previous month collection because the targets vary from month to month.
Tax revenue for a particular month varies according to the taxes due and payable in a month. For example, provisional tax and fringe benefits tax are due and expected to be paid in July, October, January and April and, therefore, tax revenue in these months are expected to be higher than the other months,” he explained.
Kapoloma said the excise duty continues to be affected by the various tax exemptions introduced in 2012/13 fiscal budget.
In the month under review, the tax revenue collector beat its target on income and profits by K1.2 billion (about $30.7m), in goods and services by K370 million (about $9.4m) and in international trade by K749 million (about $1.2m).
The collections were, however, below target on fringe benefits at K42.2 million by K9 million, company assessment set at K462 million by K197 million and local and excise duties by K266 million out of a targeted K969 million.
But Kapoloma said MRA was still facing compliance challenges in the retail sector, and has since urged taxpayers to comply with the tax laws by remitting the correct amount of taxes due.
Since July 2012, the tax body has collected about K171.5 billion, beating its revised target for the period by about K6.9 billion.
In an earlier interview, the Economics Association of Malawi (Ecama) executive director Nelson Mkandawire said MRA’s beating of targets could be a sign that the economy is picking up, or increased efforts by MRA to collect more.
