For the second time in a row this fiscal year, Malawi Revenue Authority (MRA) has beaten its monthly tax revenue target by collecting K6.2 billion in August, representing a 112 percent over performance.
In an interview on Friday, MRA deputy director (corporate affairs) Steven Kapoloma said the public tax collector collected K58.8 billion against a target of K52.6 billion.
MRA attributes this improved performance to strong collections in pay as you earn (Paye), value added tax (VAT), provisional tax, excise duties, fringe benefit tax, dividend tax and non-resident tax.
“The August collection follows back-to-back positive performances in June and July when the authority also exceeded revenue collection targets. The tax base is widening and we are optimistic that this progress will continue,” said Kapoloma.
The performance means that this fiscal year, MRA has collected K121 billion against a projection of K112 billion, representing an excess collection of K8.8 billion.
This performance seems to indicate that the revenue collector has turned the corner after almost eight months of under collection.
In June, MRA collected K56.1 billion, beating the projected target of K54.3 billion by K 1.8 billion and in July, MRA collected K62.5 billion against a projected target of K59.6 billion, exceeding the target by K2.9 billion.
MRA is also making significant progress in the automation of services, which has seen the migration to Automated System for Customs Data (Asycuda) world system with 11 stations now running online.
Kapoloma said the system offers speed and convenience as it ensures that goods are cleared electronically from anywhere in the world.
“Consumers are also beginning to take an active role in demanding fiscal receipts generated by the electronic fiscal devices,” he said.
Last month, tax expert Emmanuel Kaluluma hailed MRA for beating its target at the end of its financial year, saying this gives hope that the tax collector can do better going forward.