Poor network hampers Malawi tax collection—MRA

Poor telecommunication network is a major challenge that most business operators are facing when sending business reports to Malawi Revenue Authority (MRA) regarding their day-to-day business operations.

This was disclosed in Mzuzu last week during a taxation workshop MRA organised as one way of sensitising operators of lodges, inns and motels to domestic taxes in relation to value added tax (VAT), pay as you earn (Paye) as well as withholding tax.

Mzuzu domestic taxes station manager Wezi Gondwe said poor communication network is hindering MRA’s tax collection efforts because most electronic fiscal devices (EFDs) use mobile phone service providers’ subscriber identity module (SIM) cards for operations.

“Previously, the challenge was that most people running businesses in the country did not have EFD machines. But now, many business operators across the country are using this device, which is making our job of collecting taxes from them much easier.

“Lately, we have been receiving concerns on the poor network from different individuals and business companies. As a result, you will find that in the course of sending their business reports to the authority, the machine suddenly stops working,” he said.

Gondwe said some businesspersons are compliant with the voluntary tax payment from EFD, but there are others who are not; hence, the workshop to encourage them to use the device, which he said is the safest and easiest way of paying tax.