MRA misses Feb target: Tax revenue drops 30% compared to January
The Malawi Revenue Authority (MRA) collected K28.6 billion, about two percent below the month’s projection, blaming the underperformance on lower than anticipated taxes on income and profit.
Published MRA February tax outturn show that the month’s tax revenue also fell short of the previous month’s collection of a whopping K41 billion by 30 percent.
But the public tax collector has said that cumulatively up to February 2014, MRA collected K115.6 billion, which is 1.7 percent above the period’s projection.
A detailed analysis of the tax revenue indicates that K11.6 billion was collected under income and profit taxes, missing by 11 percent the month’s projection.
Under the tax line, K6.7 billion was collected through Pay As You Earn (Paye) which is about four percent below the month’s target and MRA has blamed the underperformance on delayed salary payments in some government departments and ministries.
MRA collected K13.4 billion from goods and services—value added tax (VAT) and excise duty—collectively registering a surplus of 2.4 percent above the monthly projection but still 2.5 percent shy of the January performance.
Under the tax line revenue, VAT amounted to K10.64 billion, representing an excess of 11.6 percent above the monthly target while a total of K2.7 billion was collected through excise tax against a target of K3.5 billion.
On international trade, MRA collected import duty of K3.6 billion, surpassing the February target by 16.9 percent and the revenue collector has attributed the improvement to increased volumes of fuel imported during the month under review.
Under the Voluntary Compliance Window (VCW)—a three-month tax relief for defaulters introduced in November 2013, MRA collected a total of K338.2 million compared to a total of K450.3 million in January.
Cumulatively out of a total of K3.4 billion declared and approved as eligible under the programme, MRA said a total of K864.3 million had been collected by end February 2014.
According to the 2013/14 budget statement, Malawi’s total revenues and grants are expected to amount to K603.4 billion. Total domestic revenues are projected at K363.1 billion, representing 60 percent of total revenue and grants, while K240.3 billion are donor grants, representing 40 percent of total revenue and grants.
In November last year, donors under the Common Approach to Budget Support (Cabs), announced the withholding of aid due to the looting of public funds at Capital Hill dubbed Cashgate which has seen government departments struggling to meet its budget requirements.
