Malawi Revenue Authority (MRA) collected K24.9 billion (about $83m) in October, beating its target by K2.3 billion (about $7.6m), according to a report released by the tax collector.
According to October unaudited report, MRA collected K4.7 billion (about $15.6m) from pay as you earn (Paye), K5.3 billion (about $17.6m) from corporate tax, K1.6 billion (about $5.3m) withholding tax, K7 billion (about $23.3m) value added tax (VAT), K3.1 billion (about $10.3) international trade.
MRA collected K2.261 billion (about $7.5m) in excise duties, missing the target by K385 million (about $1.2m) while in fringe benefits and non-resident tax it only collected K719.14 million (about $2.3m) against the target of K750.32 million (about $2.5m).
But in an interview on Monday, MRA spokesperson Steve Kapoloma said they missed the targets on fringe benefits because of changes in employee benefits structure.
â€œThe missed targets may be attributed to companies opting to pay their employees in cash for fringe benefits.
â€œThat is, employers find it easy to pay their employees lump sum amounts rather than separately pay fringe benefits. This has, therefore, reduced the amount of tax on fringe benefits,â€ said Kapoloma.
He, however, could not explain why MRA missed the target on excise duties, saying he needed to consult.
Kapoloma was noncommittal on whether MRA would achieve its annual target of K245.9 billion (about $822m), saying it was too early to predict.
He, however, said since July this year they have been beating targets on average.
Kapoloma attributed the good news to taxpayers who he said are tax compliant.
Cumulatively, since July this year, MRA has collected K85 billion (about $283m) against a projection of K80 billion (about $266m).
MRA is this year expected to collect K236.5 billion (about $788m) to feed into the K408 billion (about $1.3bn) national budget.
The body is expected to release monthly tax revenue reports in line with the International Monetary Fund (IMF) recommendation.
The recommendation follows the K15 billion (about $50m) MRA borrowing scandal in which the tax collector â€˜colouredâ€™ figures to paint a picture of beating targets.