MRA reforms to heighten tax compliance
By Robert Katuli
Lilongwe, November 24: Malawi Revenue Authority (MRA) has given insights into the various reforms it is currently undertaking, saying the initiatives are aimed at increasing tax compliance to improve revenue collection and service delivery in the country.
This was disclosed during a two-day media training MRA organised in Lilongwe from Wednesday to Thursday to share with the media various developments taking place at the institution.
MRA Head of Corporate Affairs Steven Kapoloma said that it is the taxpayers themselves that are driving this reforms agenda.
“As you are aware, there are more automated services that taxpayers are demanding from us, and therefore it is important that we keep up with the pace of innovation that is taking place,” said Kapoloma.
He said Presumptive Tax, Block Management System, Tax Stamps and Msonkho Online as some of the reform initiatives MRA is implementing.
“Now taxpayers can request a tax clearance certificate in the confines of their homes and they will be able to get it within two or three days, something that was taking months for them to get this service,” he said.
Kapoloma added that there is also good response on the Block Management System and Presumptive Tax, which is an advance payment of income tax for small and medium scale businesses in the informal sector.
According to one of the presentations at the workshop, the Block Management System, on the other hand, is a taxpayer outreach scheme that physically identifies and maps taxpayers and breaks them down into manageable blocks to allow MRA to visit them in person to educate and encourage tax compliance.
“We have collected over K40 billion in this space by making sure that we reach out to taxpayers on their vicinity and being able to understand their needs and being able to provide the services they want.
“And because we are being close to them, they see the value of being part and parcel of this Presumptive Tax and Block Management System,” Kapoloma explained.
He said there is huge potential in Malawi for taxpayers to pay saying they want to make sure that each and every citizen earning income is provided the opportunity to participate in the development of the country by paying taxes.
On Tax Stamps, MRA Media Specialist Wadza Otomani said the purpose of this initiative is to protect the citizenry from an influx of fake and hazardous products smuggled into the country.
He said only legitimate products will have the stamp and be on the market as listed under the Customs and Excise Act, adding that any other product that will be on the market without the stamp will be confiscated and destroyed.
The post MRA reforms to heighten tax compliance appeared first on Malawi Voice.