MRA surpasses annual target, collects K393bn
The Malawi Revenue Authority (MRA) beat its annual revenue target by collecting K393.46 billion during the 2013/14 fiscal year beating its projection of K345.11 billion by 14 percent, the tax collector’s outturn indicates.
In the 2013/14 fiscal year, total tax revenues was projected at K328.1 billion while non-tax revenues were estimated at K35 billion while total revenues and grants for the year were expected at K603.4 billion with domestic revenues pegged at K363.1 billion. Donors were expected to contribute K240.3 billion as grants.
However, MRA June 2014 tax outturn released this week indicates that although the authority beat its annual projection, it failed to meet its June projection by collecting gross tax revenues totalling K32.88 billion against a projection of K35.51 billion.
In February this year, MRA also failed to meet its projection by collecting K28.6 billion, about two percent below the month’s projection, attributing the underperformance on lower than anticipated taxes on income and profits.
The tax collector has explained that the failure to meet the targets was due to underperformances in all tax components except local value added tax (VAT), local excise and turnover and international trade taxes.
In June, all tax lines under income and profits performed dismally with a gross total of K13.89 billion compared to a projection of K17.33 billion, MRA has said.
The tax collector has explained that the underperformance was largely due to non-remittance of pay as you earn (Paye) by government due to delayed salary payments and adjustments in payments of provisional taxes as the year ended.
According to MRA, taxpayers are required by law to pay 90 percent of their projected annual corporate tax liabilities stemming from annual projected profits during the fourth quarter.
Paye at K7.1 billion was 23 percent below the June projection.
However, MRA notes that the last quarter of the fiscal year was characterised by higher than normal Paye collected mainly from the agriculture sector, which employs more people to process and market agricultural produce.
Corporate tax at K2.86 billion was 43 percent below the June 2014 target due to what MRA has attributed to settled obligations through provisional taxes.
Although MRA registered dismal performance in income and profits tax lines, it registered good performance in goods and services taxes.
The authority collected K15.8 billion from goods and services, registering an excess of K1.06 billion over the target.
Electronic Fiscal Devices (EFDs) which were introduced mid this year have been attributed to the better performance of VAT with the tax line beating its projection by K1.33 billion.
