Malawi’s Revenue Body cracks down on Illegal Traders

By: Happy Arnold Soko

The Malawi Revenue Authority (MRA) says it is optimistic of meeting revenue targets to contribute to the proposed 2016/2017 heavy tax budget plan pegged At MK1 trillion by the Malawi government.

Speaking with The Malawi Star on Friday, MRA Board Chairperson Evelyn Mwapasa said that with the introduction of  Electrical Fiscal Devices (EFD), MRA has developed a comprehensive compliance program to enhance revenue collections.

Mwapasa:
Mwapasa: EFD Machines having an impact

She said with over ten thousand already installed EFD machines, MRA is expected register more eligible taxpayers, which is expected to boost government revenue by over MK729 Million in the 2016/2017 financial year.

She explained in an interview, “we have installed over ten thousand EFD machines and the Value Added Tax (VAT) has started increasing. Last year we were testing these machines making sure that they are nonstop. Now we want to ensure the public that these machines are working and that a VAT receipt should be issued in everything they purchase. MRA is suppose to generate MK729 million that contributea to the national basket budget. We are ready and we are going to work hard and achieve the target. We are positive that the revenue will now increase. We had technique problems since its inception that’s why there has been a delay in launching.”

Despite the use of fake receipt by other traders, Mwapasa hinted that tax collecting body will meet its target. She added that EFD machines have a great impact as far as the countries falling economy is concerned.

“As far as the country’s budget is concerned, the EFD machine has got an impact. We need improved compliance rate in all sectors of business that contribute to the economy.  VAT compliance is not only limited to traders, but also to personal taxes, company taxes, withholding taxes and all othera that remit their taxes,” added Mwapasa.

Meanwhile, Consumer Association of Malawi (CAMA) president John Kapito said his office has registered a decrease in the number of complaints by consumers for buying fake goods.

“CAMA started “my receipt campaign” sometime back and we have been carrying this campaign and making sure that the campaign takes root. There is a remarkable change in the behavior and attitude of consumers. Now most of complaints we get at CAMA you find that a person brings in a receipt. This is telling us that consumers are now beginning to demand receipts when they buy goods and services on the market and it is benefiting the government to collect VAT through MRA,” stated Kapito.

MRA said the government also  plans to implement far reaching measures to mitigate behaviors by other companies that dodge tax payments.

 

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