Tax Revenue Mobilisation in Malawi

Abstract

This document examines the taxation system in Malawi, analyzing the evolution of tax policies and administration from independence in 1964 to the present. It highlights the significant reliance on direct taxes, contrasting Malawi's tax revenue performance with that of other sub-Saharan African countries. The study utilizes Afrobarometer survey data to assess tax morale, revealing notable increases in tax compliance in Malawi and Madagascar. The document discusses the establishment of the Malawi Revenue Authority (MRA) and the implementation of various reforms aimed at enhancing tax administration and compliance. It also addresses the challenges faced in accurately measuring tax morale and the implications of historical tax structures on current practices. Through a detailed examination of tax data and public perceptions, this analysis provides insights into the factors influencing tax compliance and the effectiveness of tax administration in Malawi.