The Malawi Revenue Authority (MRA) says it has stopped receiving payments using ordinary cheques in a bid to reduce costs incurred when recovering taxes from individuals whose cheques have been referred to drawer.
Refer to drawer is a situation whereby a cheque is not honoured by the issuing bank and it is returned to the payee bank.
Speaking in an interview after a meeting between MRA officials and religious leaders in Lilongwe on Wednesday MRA public relations specialist Hilda Mkandawire said the public tax collector will encourage its customers to embrace e-payment transaction so as to save time and end the problem of dishonoured cheques.
She said: “Starting from next month [October 1], we will only be receiving bank certified cheques and cash paid through e-payment. This will help us deal with the problems of cheques being referred to drawer a thing which was increasing our costs to recover taxes once a cheque has been referred to drawer.”
MRA head of corporate affairs Steven Kapoloma agreed with Mkandawire that the issue of refer to drawer is a problem but could not state the extent of the problem.
“If one has issued us a cheque he is cleared in our books and if we spent K10 000 to get that payment it means we are forced to spend another K10 000 to chase the same payment,” he said. n