The Malawi Revenue Authority (MRA) says it is impressive with its revenue collection figures despite the prevalence of the novel coronavirus (Covid-19) pandemic which has hit the industry.
MRA’s Head of Corporate Affairs Steven Kapoloma told Mining & Trade Review in an interview that the impressive performance is as a result of interventions that the tax collector has put in place to widen the tax net.
Kapoloma explained that to ensure that it continues meeting its targets, the body is persistently working on bringing new members into the tax net, conducting public awareness meetings on the importance of tax remission and protecting its clients from Covid-19.
Despite the pandemic, MRA managed to collect a significant amount of money during the first half of 2020/2021 financial year. From July to December 2020, it collected K530.86-billion against the overall target of 1.1-trillion the development he described as impressive and attributed to the spirit of dedication of MRA officers.
“We believe the performance will improve in the third and last quarter because we have put in place a number of interventions aimed at increasing revenue collection, despite Covid-19 pandemic,” said Kapoloma.
In a bid to reduce Covid-19 transmissions among its clients and employees, MRA ensures that people visiting their offices follow all government set preventative measures.
Kapoloma also said the organization has decongested its offices through the use of automated service delivery kits such as electronic payments.
He said those at the borders have been provided with a pre-clearance facility which allows importers and exporters to submit their declarations and supporting documents for processing before the arrival of their goods.
“We have online transaction platforms that allow importers and exporters to process Customs transactions on line and real time, which use Customs Management Systems called ASYCUDA. The systems also interface with government agencies such as Directorate of Road Traffic and Safety Services (DRTSS), Reserve Bank of Malawi (RBM), Malawi Police Services (MPS) and International Police (INTERPOL),” said Kapoloma.
He, however, bemoaned the increase in cases of tax invasion and smuggling of goods but said the tax collector is tirelessly working on combating the malpractices.
Kapoloma sounded hopeful that the organization will soon win the fight against tax evasion and smuggling, through sensitizing the general public on the importance of tax remission.
He said MRA also encourages the general public to report to their offices anyone evading tax and smuggling goods.
“MRA conducts routine intensive patrols through the Flexible Anti-Smuggling Teams (FAST). We have fixed roadblocks operating in all the three regions of the country, which are in addition to mobile roadblocks we mount from time to time to control smuggling.
MRA is a public agency which was established by Act of parliament 1998 to assess, collect and account for tax revenues