Home Business CASHGATE NEGATIVELY AFFECTS MRA’s TAX COLLECTIONS

CASHGATE NEGATIVELY AFFECTS MRA’s TAX COLLECTIONS

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Analysts attribute it to effects of cash gate
The Malawi Revenue Authority –MRA’s TAX collections have dropped by 26% in November as commentators attribute it to cash gate effects.
According to MRA’s Revenue Performance Report for November, MRA accumulated a monthly total of MWK 28 billion from October’s MWK 38 billion representing a 26% decline.
The MRA was quick to point out that this this has happened due to seasonal factors and that the MWK 28 billion is more than the projected figures of MWK 25 billion.
“On a month to month basis, tax revenue collection in November 2013 was lower than that of October 2013.
However, at MWK 28.12 billion, tax revenues were 11.39 percent higher than the projection for the month.
According to MRA’s report, the month on month developments were due to seasonal factors, and the good performance against the projected revenues for the month reflected relatively strong growth in PAYE, withholding tax, VAT and Excise tax on account of continued good economic performance.”
Income and Profits tax, Pay as you earn, Fringe benefit and Non Resident Tax and Value Added Tax were among the categories that surpassed the target at MWK 10.44 billion, MWK 6.90 billion, MWK 234 million and MWK 10.69 billion respectively.
Commenting on this performance, one of the country’s social commentators Mabvuto Bamusi attributed this drop as connected to the cash gate scam which has slowed business activities.
“The dropping of the revenue during the month shows that the cash gate scandal effects have affected the business performance such that MRA was failing to collect more revenue.”, said Bamusi.
Meanwhile, MRA has accumulated MWK 69.9 billion which is MWK 16.8 billion more of its projection on its course to acquire at least MWK 158.6 billion in tax money which will be more than MWK 133.3 billion for 2013-2014 fiscal year.