MRA BEATS 2023/24 REVENUE TARGET BY K5.933 BILLION

The Malawi Revenue Authority (MRA) has beaten its 2023/24 revenue target by K5.933 billion after collecting K2.186 trillion during the financial year that ended on March 31 2024.

During the year, MRA projected to collect K2.180 trillion.

The collection represents 42 percent revenue growth over 2022/23 financial year’s collection.

In a published statement posted on its website, MRA Commissioner General John Biziwick said the collection is mainly due to compliance of taxpayers, which contributed to a 36 percent revenue growth.

Biziwick: Together, we can foster economic independence for Malawi

“We acknowledge the significant contribution of taxpayers to this important milestone and their tax compliance has been a crucial factor in achieving remarkable performance.

“We commend all our members of staff for this performance and, more importantly, the taxpayers, other stakeholders and encourage them to continue paying their fair share of taxes. Together, we can foster economic independence for Malawi.” he said.

Meanwhile, the revenue came from value added tax (VAT) which raised K651.049 billion, pay as you earn brought in K458.305 billion, corporate tax contributed K349.173 billion, excise duty collected K219.865 billion and import duty generated K197.907 billion.

MRA has since stressed that it is set to broaden the tax base by taxing more goods and services as well as addressing revenue leakages in the new 2024/25 fiscal year to meet its K3.26 trillion target for the financial year.

MRA head of corporate affairs Steven Kapoloma said the strategies include tax stamps, third party data matching where there will be cross-reference taxpayer information obtained from external sources with the data held in its various systems and VAT Electronic Invoicing System, an upgrade from the current electronic fiscal devices.

“The VAT Electronic Invoicing System will be open to more advanced technologies to enhance business functionalities, system performance, security, and user interface.

“The system upgrade is aimed at tackling VAT fraud and evasion by improving compliance management, reducing operational cost for both the taxpayers and the tax administration, improving efficiency in tax administration and enhanced system ownership and control since the system will be used on any machinery by traders such as point of sale devices, cash registers and even phones.”

Minister of Finance and Economic Affairs Simplex Chithyola Banda is on record as having said government is optimistic that MRA will play a crucial role in its operations to collect the right amounts of revenue for the full implementation of the national budget.

During the 2024/25 financial year, tax revenues are estimated at K3.26 trillion.

Source:Times