By William Kumwembe & Wezzie Gausi:
Newly appointed Malawi Revenue Authority (MRA) Commissioner General Daniel Daka has said the revenue collection body remains poised to meet its target for this financial year and beyond.
He was speaking in an interview Wednesday after being appointed to the position.
Daka, who served as MRA Director of Tax Investigation and was on secondment at the Treasury as legal adviser, replaces John Biziwick, whose contract expired early this month.
According to Daka, MRA has necessary expertise for enhanced revenue collection and he will use the pool of resources at MRA in setting and implementing strategies towards increasing revenue.
He said motivating the staff and broadening the tax base are among key steps he intends to undertake.
“We would be looking at untapped areas to maximise revenue generation. We are energised to use the experts available to maximise capacity and meet the set targets,” he said.
For the 2024-25 financial year, domestic revenue is estimated at K3.38 trillion.
Ironically, the revenue collection body missed its K748.117 billion revenue target for the first quarter.
It collected K656.488 billion, which is about 12 percent shy of the quarter’s target.
The revenue collection body was recently challenged by Minister of Finance Simplex Chithyola-Banda to triple its tax revenue collections in a bid to aid the government meet its expenditure needs.
Confirming Daka’s appointment on Tuesday, Chithyola Banda said the country expects the new commissioner general to perform according to the laws that govern the institution.
The ministry has also promoted MRA Commissioner of Customs Douglas Katchomoza as new MRA Executive Director, replacing the outgoing Agness Katsonga.
Commenting on the appointments, economist Velli Nyirongo said Daka’s appointment constitutes a significant development with potential ramifications for the nation’s fiscal health.
He said while his legal expertise offers potential advantages, such as in-depth knowledge of government finance and the scope to enact tax-related legal reforms, certain challenges must be considered.
“These include a dearth of direct experience in tax administration and the pending confirmation of his appointment by the MRA Board. Daka’s success will depend on his capacity to effectively lead the MRA, improve tax compliance and maximise revenue generation.
“Close monitoring of key performance indicators, such as revenue growth, tax compliance rates, administrative efficiency and progress on tax reforms, will be essential to evaluating the impact of his leadership on Malawi’s economic trajectory,”Nyirongo said.
Daka holds a bachelor’s degree in Law from the University of Malawi. He has more than 10 years of experience in the area of tax administration (on tax and customs laws).
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