Malawi Revenue Authority (MRA) says it has collected K4 billion in tax revenue through its ongoing six-month Voluntary Compliance Window (VCW) which closes at the end of this month.
MRA head of corporate affairs Steve Kapoloma said in a written response on Tuesday that since the window opened on April 8, about 4 000 taxpayers have availed themselves to honour their tax obligations.
He said: “MRA is still receiving applications up until October 31 and all interested taxpayers have to apply by completing a VCW form.
“The authority is, therefore, encouraging owners of motor vehicles, motor cycles and other goods that were not duly cleared or smuggled into Malawi to take advantage of facility to clear their items through proper customs procedures while the window is still open.”
MRA is implementing VCW as part of mitigation measures set by government to relieve taxpayers in response to the Covid-19 pandemic.
The compliance window allows non-compliant taxpayers to settle their tax obligations without paying penalties, interest or any charges.
MRA projected to waive K1.9 billion in tax revenues with K8.5 billion being collected. This means that thus far, the tax agency has collected half of what it had envisaged.
Last month, Institute of Chartered Accountants in Malawi and Malawi Confederation of Chambers of Commerce and Industry (MCCCI) proposed the extension of VCW from October 2020 to March 2021 as companies continue to struggle to stay afloat amid the global pandemic.
“Of additional importance, government should pay value-added tax and withholding tax refunds to improve business’ liquidity positions to enable them meet wages and statutory obligations such as taxes,” said MCCC head of business environment and policy advocacy Madalitso Kazembe.
In response, Treasury spokesperson Williams Banda said the window is up to October 2020 only, urging taxpayers to use the current window to sort out their tax obligations.