By Lovemore Khomo

John Bizwick: condemned the culture of tax evasion largely practiced by foreign investor

Malawi Revenue Authority-MRA has said the new tax measures that Minister of Finance recently announced in the National Assembly will support and boost the collection of revenue in the country.

MRA Commissioner General John Bizwick said this during a training workshop on New Tax Measures on Friday in Mangochi, organised together with Association of Business Journalists-ABJ.

Some of the new measures include revision of the tax brackets on Pay As You Earn (PAYE) on employment income in the Eleventh Schedule to the Act, Introduction of Advance Income Tax on exports at the rate of 10%, exports made under the Simplified Trade Regime (STR) and Introduction of additional 10% income tax rate for commercial banks on taxable income above K10 billion.

The measures became effective on 5th April 2023, following the publication of the Taxation Amendment Act and the Valued Added Tax Amendment Act in the Gazette.

Bizwick told journalists that in last financial quarter of the year that ended in March 2023, managed to collect K398.3 billion with a surplus of K10 billion from their target. In 2022/23 financial year, MRA collected K1.539 billion surpassing the target with K1.39 billion.

MRA Commissioner General has also condemned the culture of tax evasion largely practiced by foreign investors which he said must stop for the betterment of building Malawi.

He elaborated that these foreign investors do evade tax because they have no commitment to the development of Malawi as they continue show low compliance culture.

“MRA cannot win the battle of tax envasion, but we rely on you journalists to provide information to the public so as people know and understand MRA’s cause.” Bizwick advised.

Bizwick has however expressed concern over unpaid revenues by government ministries, departments and agencies that amounts to K9. 8 billion citing reserve bank system failure as main cause.

Meanwhile, National Coordinator for Association of Business Journalists in Malawi (ABJ) Vincent Khonyongwa expressed gratitude over MRA’s consideration to train journalists on new tax measures as the knowledge gained will be used for more information sharing with the public.

Khonyongwa said ABJ value the relationship that exists with MRA and expect more mutual benefits between the two institutions.

The new tax measures come as Malawi Revenue Authority – MRA is facilitating reform agendas that could boost revenue collection in the country.

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