Malawi Revenue Authority beat monthly target: Collects K44.27bn

The Malawi Revenue Authority (MRA) has collected K44.27 billion for the month February, beating the set target of K43.65 billion by K0.6 billion [representing 1.4 percent). [caption id="attachment_105364" align="alignright" width="600"] Msonkho House: MRA offices[/caption] [caption id="attachment_105363" align="alignright" width="294"] Tom Malata:MRA commissioner general[/caption] The sauthority also announced that they have accumulatively collected K373.41 billion for the current fiscal year [2015/16] against a projection of K382.59 billion, representing a 98 percent collection. According to a Revenue Performance report for February 2016, MRA has collected K20.37 billion under Income and Profit Tax, exceeding its projection of K20.32 billion by K51.76 million. This growth also shows strong performance in all tax lines under this category, according to the revenue collector. Under Pay As You Earn (PAYE),  the Authority bagged a total of K13.42 billion, 4 percent above the monthly projection. MRA attributed the increase in this category to salary adjustments by some employers to cushion their salaries and wages against the rising inflation. A combined total of K674.44 million of Fringe Benefts Taxes (FBT) and Non-Resident Taxes (NRT) over-performed its monthly projection of K 578.87 million by 17 percent. While Corporate Tax registered a negative variance of 26 percent following collection of K2.2 billion against a monthly target of K3 billion. "A total of MK19.10 billion was collected from goods and services above a monthly target of MK 18.38 billion registering a surplus of 4 percent. This is attributed to over performance in all tax lines in this category. "At MK 15.05 billion, Value Added Tax (VAT) over-performed its monthly target of MK14.93 billion by 1 percent. Import VAT exceeded its monthly target by 2 percent whilst Domestic VAT underperformed by1 percent," reads the report. At K4.40 billion, Import Duty registered a defcit of 6 percent below the monthly target of MK 4.68 billion. At K4.05 billion, excise duties collected during the month under review were 17 percent above the target while Local and Import excise exceeded their monthly targets by 36 percent and 4 percent respectively. The over performance was largely due to increased enforcement efforts and improved levels of taxpayers’ compliance. The report also says a 48 percent deficit was recorded by other taxes, against a target of K 246.54 million. The shortfall was mainly due to under performance in all taxes, except turn over tax.