MRA wants Malawi to shake off donor dependence
The Malawi Revenue Authority (MRA) has spoken on the need for the country to wean itself of donor reliance particularly on financial resources government uses for its operations
The country’s bilateral donors under the Common Approach to Budget Support (Cabs), who support 40 percent of the country’s budget, withheld financial support amounting to $150 million last November over revelations of plunder of public finances known as Cashgate.
British audit firm Baker Tilly found that over K13 billion of public funds were stolen in a systematic way involving government employees in connivance with some private sector operatives.
Since the revelations of Cashgate, donors have not made any commitment on their future budgetary support to the country, whose budget is expected to be presented in Parliament in September.
Currently, government operations are being run on a four-month provisional budget of K210 billion which will expire at the end of October.
Weighing in on the donor independence, MRA deputy commissioner general Roza Mbilizi said on Friday the public tax collector will, as has always been the case, execute its noble duty of collecting tax to ensure that government operations run smoothly.
“We don’t want to be under donor influence. We want financial independence,” said Mbilizi at the Institute of Tax Administration (ITA) in Blantyre at the close of financial investigations and corporate auditing workshop facilitated by representatives of US government treasury department.
“We will ensure that whoever has to pay tax pays the right tax at the right time. We want to improve our technical expertise and service to the taxpayer. Our duty is to administer the tax laws.”
She hailed the US government treasury department for the technical expertise imparted on its officials, saying the revenue authority will be knowledgeable and capable than before.
Mbilizi said MRA is geared at collecting close to K500 billion out of the total budget of over K743 billion in the 2014/14 fiscal year.
The 2014/15 tax revenue target is a rise from last financial year’s target of K345 billion and the actual collection of K394.10 billion.
MRA could be banking hopes on the implementation of Electronic Fiscal Device (EFDs), a device that records all sales transaction and provide evidence of such transaction in a technical easy and undisputed way, which is expected to increase value added tax (VAT) collections by 20 percent.
The tax collection agency also wants the contribution of large taxpayer organisations (LTOs) to domestic tax to rise to around 80 percent from the current 70 percent largely buoyed by auditing expertise imparted to them by the US treasury officials and also the operationalisation of cargo scanners and other reforms.
MRA believes the training will ensure that their officials get to understand complex tax planning by multinational companies who sometimes avoid paying tax through transfer pricing.
Certainly the systems of tax collection in Malawi are flowed and if these systems were to to be tightened and then the systems that govern the money so that it goes to the right intended funtions are also tightned then malwi will move forward. I am very malawian but I totally agree with Donors witholding thier money because as a country we need to learn to manage our affairs better1 stop blaming the world for our own mismanagement!
How long are we going to go on beggingfor? we are full of resources how come we are stilll poor?
Inunso kwanuko need new broom,there are gud number of clerks with meager monthly earnings but owns billions of kwacha in assets
Prof B said this ages ago. White hate economic independence.
Wotakata Mandasi organise marches and demonstration, fuel and forex shortage, Decampaigned Prof about jet which she stole later. Told every one there was no money and she stole MK13b. She wanted power by all means. Prof had to die.
Prof Mphwache is here. Prof APM make sure donors, aid, loans never be part of the running the governmental infrastructure but projects of development. White people must not give loans to employ their own people, waste it on pep talk, conduct seminars, activism, seminars, civic education, purchase of free condoms. NO!
government must never provide free condoms unless. Ofuna irresponsible sex must be responsible to at least buy a condom.
It seems to be a good wish. But the question is, will it ever come to pass? Its been ages since the government machinery has been wishing aloud so to say, but up to date nothing tangible has been done. What strtegies have u put in place that will make the plan work out and most importanly make Malawians not only believe but also be at peace with it?