MRA misses June tax revenue target

The Malawi Revenue Authority (MRA) collected K26.5 billion in June 2013, missing its target by K271 million, the tax revenue outturn has shown.

The June 2013 tax outturn indicates that the public tax collector missed its target on income and profits by K633 million, and managed to collect K11.8 billion.

MRA raised K2.96 billion from international trade, which is about K311 million below its revised target and also missed its target on excise duties by K994 million.

MRA corporate affairs deputy director Steven Kapoloma was not available to comment on the figures on Sunday, but earlier said that the tax body did not meet the target for excise duty due to the removal and reduction of excise duty on some products in line with best practice and also aligned regional rates.

In the June 2013 tax outturn, authority was able to beat its targets in goods and services, value added tax (VAT) and excise duty by K629 million, raising about K11.47 billion in the month under review.

In the previous month, however, MRA collected K26.4 billion, beating its target by K4.7 billion.

The tax collector beat its target on income and profits by K3.5 billion and international trade by K345 million, but missed its targets on excise duty by K68 million and domestic VAT by K80 million.

Cumulatively, MRA collected K276 billion, beating its revised target by K21.8 billion over the past 12 months.

In the 12 months period, MRA collected K129.3 billion from income and profits, K110 billion from goods and services and K32.8 billion from international trade.

The report indicates that over the last 12 months, MRA missed its targets on company assessment by K742 million and excise duties—import and local—by K1.53 billion.

Presenting the 2013/14 national budget in Parliament, Minister of Finance Ken Lipenga said domestic revenue was expected to overperform.

“In spite of the many challenges facing the government, the fiscal performance for the 2012/13 financial year is on track.

“Overall, domestic revenues are expected to amount to K283.5 billion, surpassing the mid-year revised target of K278.9 billion by K4.6 billion, largely on account of tax revenues, which are projected to amount to K253.6 billion against a mid-year revised target of K243.8 billion,” said Lipenga.

He said in 2013/14 fiscal year, total domestic revenues and tax revenues are projected at K328.1 billion while the non-tax revenues are estimated at K35 billion.

The tax revenue is expected to feed into a 2013/14 total expenditure and net lending projected at K638.2 billion comprising K463.1 billion recurrent expenditure and K175 billion development expenditure.