Public tax collector, Malawi Revenue Authority (MRA), beat its October 2016 target to maintain surplus revenue collections, four months into the 2016/17 fiscal year despite prevailing tough economic environment.
MRA collected a surplus of K7 billion in October after collecting gross revenue of K71.8 billion against a target of K64 billion for the month, representing a 12 percent performance increase, according to the October Revenue Performance Report.
Between July and October, MRA has collected K251.8 billion, which is above the projected K228.5 billion.
In its report, MRA has attributed the performance to reforms championed by the Public Service Reforms Commission coupled with staff commitment and dedication to work.
Reads the report in part: “Notably, value added tax [VAT] collections have increased, confirming that electronic fiscal devices [EFDs] are also contributing a lot.
“Good performances in Pay As You Earn [Paye], import duty, import VAT, domestic VAT, import excise and non-resident tax [NRT] also contributed to this remarkable performance.”
MRA deputy director (Corporate Affairs) Steven Kapoloma said the sustained improvement in tax collection is a direct result of tax compliant behaviour by taxpayers who continue to voluntarily come forward to pay their taxes on time.
Going forward, Kapoloma encouraged taxpayers to be tax compliant as the 2016/17 fiscal year progresses
Further, MRA has also appealed to the public to play an active role in demanding receipts generated by EFDs every time they make a purchase to ensure that VAT is accounted for. n