For the financial year 2021/2022 ended June 30, 2022, the authority collected Rs 112.6 billion compared to Rs 89.3 billion for the financial year 2020/2021. This represents an increase of Rs 23.3 billion. This is what MRA’s Director General Sudamo Lal said at a press conference on Thursday morning, October 13. He added that the Corporate Income Tax, which totals Rs 16.5 billion, accounts for the largest percentage of the amount collected, followed by the Personal Income Tax, which amounts to Rs 14 billion. Sudhamo Lal expects the total revenue collection for the fiscal year 2022/2023 to reach Rs 132 billion,
The Director-General of the MRA, Mr Sudhamo Lal, spoke about the future projects to be implemented. He said that the aim is to collect some Rs 132 billion in revenue collections during the financial year 2022-2023.
The breakdown of the revenue collections are: Corporate Income Tax amounting to Rs 16,5 billion (+40%), Personal Income Tax to the tune of Rs 14 billion (+21,1%), Value Added Tax amounting to Rs 38,3 billion (+33,9%), Excise Duties amounting to Rs 20,1 billion (+7,8%), Social Security Contributions to the tune of Rs 8,3 billion (+27,4%), Gambling Taxes amounting to Rs 1,9 billion, and others for the sum of Rs 7,3 billion.
Mr Sudhamo Lal underlined that in addition to the taxes and duties which the MRA collects for the Consolidated Fund, the organisation has also been entrusted with the responsibility of collecting agency taxes. During the financial year 2021/22, the MRA has collected Rs 6.1 billion as Agency Taxes, he indicated. As regards Tourism Sector collections, he said that last year with the opening of the borders in October 2021, accommodation sector receipts rose to Rs 4,487 million.
The Director-General of the MRA further dwelt on the organisation’s efforts to boost revenues. They include: getting debt collections back on track, raising assessment on non-compliant taxpayers, tracking non-filers, automatic claims, and focusing on high net worth individuals. He stated that as part of its strategy to ensure that every taxpayer pays his fair share of taxes, the MRA has put in place a system that ensures the tracking of every person who has a requirement to file a tax return and is not doing so.
He indicated that on 15 October 2021, at the close of the personal income tax filing season, the MRA received 202,800 returns. By the end of September 2022, that is, almost a year later, the number of tax returns for the last e-filing season 2021/22 had reached 231,601, an increase of 14%, mainly due to the MRA tracking system. The system is used for all taxes falling under the ambit of the MRA, he added.
Speaking about the income declared and tax paid by the legal profession including barristers, notaries and attorneys, Mr Sudhamo Lal said that the growth in gross income by these professionals has averaged 25% annually since 2006 and the growth in tax payments grew on average by 14% during the same period. VAT receipts from these professionals averages some Rs 180 million yearly and over the last 10 years, some Rs 150 million of tax assessments have been raised on legal professionals by the MRA, he added.
As regards the income declared and tax paid by medical practitioners, he underlined that the growth in gross income has averaged 25% annually since 2006 adding that the growth in tax payments grew on average by 35% during the same period.
Furthermore, Mr Lal said that the MRA is positioned to meet challenges ahead and has been implementing digital transformation initiatives during the last 15 years to consolidate a paperless and cashless organisation. He pointed out that over these 15 years, the MRA has successfully been able to establish an e-culture within the organisation. The MRA is now a paperless organisation, and this became possible through better automation and simplification of processes and procedures. E-Filing rate amongst individual taxpayers is 99.8%, and 99.7% amongst corporate taxpayers. He stated that 99.8% of VAT returns also are being filed electronically.
Implemented and forthcoming projects
Mr Sudhamo Lal also dwelt on the projects which have been implemented at the MRA. They include implementation of Harmonised System 2022 for the uniform classification of goods traded internationally; e-Registration of Exporter and Manufacturer under Preferential Trade Agreement; e-Duty Free Certificate for motor vehicles; full Body X-Ray Scanner at the Sir Seewoosagur Ramgoolam International Airport; Drug Loo Facility at the airport; and Central Control Room for Port Area.
As regards projects in the pipeline, the Director-General of the MRA said that they comprise the Vessel Monitoring System; the Search and Seizure Simulator; the Integrated Single Window for Trade; the World Customs Organisation’s Container Control Programme, additional Luggage and Cargo scanners at the port and airport to reinforce control; and product Code for virtual Inventory in supply chain.
He also dwelt on the e-Invoicing Project which is the e-reporting of all sales invoices by businesses. The project, he said, will be implemented in phases, and is expected to go live in April 2023. During the first phase, some 600 large taxpayers will join the project, he indicated.
