Finance Minister Felix Mlusu has given the revenue collection body, the Malawi Revenue Authority (MRA), a K150 billion monthly collection target during the 2020/2021 fiscal year.
Speaking to reporters in Blantyre on Monday after touring the MRA Msonkho House, the finance minister revealed that most of government’s major operations are currently being run using locally generated revenue out of which MRA is able to contribute about 90 percent.
Minister Mlusu therefore challenged the revenue body to put in place systems and mechanisms to enable it to expand its taxbase.
Mlusu further expressed optimism that MRA will be able to surpass the 150 billion kwacha set target adding that a number of areas in the country remain untaxable particularly among the informal business sector.
He said: “As government we need to invest more on social services and infrastructure development. At the moment we are not be able to run most of our project due to pressure on our budget. This is why we have impressed upon the MRA to find ways of maximizing its revenue base so that we should not rely on foreign borrowing just to implement our local projects.”
On his part, MRA Commissioner General John Bizwick said with businesses beginning to recover from the effects of COVD-19 pandemic restrictions, there is room for the tax collector to generate more revenue.
Bizwick further disclosed that MRA was able to beat its October monthly collection target of K90 billion after most of the coronavirus pandemic restrictions were relaxed.
The Minister of Finance Felix Mlusu presented the Tonse Alliance maiden budget earlier in September in the 49th session of National Assembly pegged at K2.2 trillion, of which K1.179 trillion is of domestic revenue while K255.7 billion are total grants.