Malawi economic crisis bites: MRA fails to collect K9.2billion in revenue

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Malawi Revenue Authority (MRA) has announced that it has failed to meet its 2015/16 tax projections with over K9.18 billion in the face of a lousy economic situation the country is sailing through.

Malawi hunger food crisis

Positive strides in revenue collected in February

Making the revelations in its revenue performance report for February issued, the exchequer also announced beating its targets for last month.

“In the month of February 2016, Malawi Revenue Authority collected MK 44.27 billion exceeding the target of K43.65 billion by 0.6 billion (1.4 percent). Cumulatively, total tax revenues collected during FY2015/16 to date amounted to MK 373.41 billion against a projection of MK 382.59 billion, representing a 98 percent collection” announced MRA in a statement released today.

However, MRA failed to collect about K1 billion from big businesses and companies in corporate tax.

“A negative variance of 26 percent was recorded under Corporate Tax by a collection of MK2.2 billion against a monthly target of MK3 billion”.

Increased enforcement efforts and improved levels of taxpayers’ compliance has been accredited as reasons MRA has collected more than 17 percent above the target on Exercise. In contrast, import duty registered a deficit of 6 percent below the target of K4.68 billion for February.

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