Ministry of Finance

Revenue Policy Division

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The Revenue Policy Division was established in March 2006 with the responsibility of policy formulation and oversight as regards mobilization and management of Government revenue. Emanating from a Tax Policy Unit in the Economic Affairs Division, the division was formulated to expand its scope and emphasis from managing the mobilization of tax revenue to management of both tax and non-tax revenue due to the Government.

Mandate

The mandate of the Division is set out in Article 8 subsection (g), of the Public Finance Management Act, which gives responsibility to the Secretary to the Treasury of collecting revenue owing to the State. Under this mandate, the Division is to analyze and formulate policies for the efficient and effective collection and management of Government revenue.

Main Objective
The main objective of the Division is to provide policy guidance through the designing of efficient and effective revenue systems that guarantee the generation of adequate public resources to meet Government’s expenditure obligations.

Specific Objectives
  • To achieve a tax and non tax revenue system that would significantly reduce donor dependency and aid,
  • To devise a tax system that allows Government to generate adequate financial resources for the financing of necessary expenditure obligations whilst facilitating strong economic growth, 
  • To provide adequate tax and non tax revenue bases to achieve millennium development goals, 
  • To achieve revenue systems which are fair, equitable and sustainable, 
  • To ensure that efficient and effective revenue collection and management systems are adhered to by all revenue collecting units, in line with the laws of the State, 
  • To be a rapid response entity on all revenue issues in Malawi.

Organizational Structure of the Revenue Division
The Division is headed by a Director at P2 (Grade C) level in the Government salary structure. There are two posts of Deputy Directors under the Director, one responsible for tax policy and another in-charge of non-tax revenue policy oversight. The activities of the Division can be further subdivided into three broad categories, namely:-

1. Policy Review and Planning Functions
The major tasks that fall under this functional category are:
  • Designing revenue policies that support Government’s development policies and private sector growth,
  • Evaluating the impact of tax policies on the tax base and domestic revenues, 
  • Evaluating the economic and revenue impact of existing tax policies such as tax expenditure accounts and efficiency analysis, 
  • Developing and maintaining revenue and receipt estimating models for forecasting tax revenues, 
  • Formulating annual Government tax and non-tax revenue budget estimates and forecasts for the Minister’s presentation to Parliament, 
  • Conducting macro and micro simulation links and forecast models with emphasis on behavioural aspects of various revenue components of Government for policy guidance, 
  • Examining Government’s membership to regional and international organizations and the implications thereof pertaining to agreements on revenue implications, 
  • Advising other Ministries, notably the Ministry of Commerce and Industry and Malawi Investment Promotion Agency, on trade and investment policies which may impact on Government revenue.

2. Operations, Monitoring and Evaluation Functions

The key tasks under this category are;
  • Oversight of adherence to efficient and effective revenue collection and management systems by all revenue collection bodies. This is done through monitoring of both tax and non-tax revenue performance in line with existing targets and preparation of management reports,
  • Creation, maintenance and updating of tax and non-tax revenue data bank for policy design purposes, 
  • Advising and consulting all revenue collecting Ministries and Departments on Government’s new policy directions and appropriate rates of user fees, licensing fees and Government service charges, 
  • Participating in the budget formulation process and liaising with all other Departments of the Ministry of Finance to ensure a coordinated formulation and management of the National Budget Framework, 
  • Facilitating the drafting and processing of taxation and user fees amendments to the regulations through the Ministry of Justice to ensure that the amendments are enacted and gazetted, 
  • Coordinating with line Ministries, Government Departments and Malawi Revenue Authority on issues impacting on revenues and provide necessary advice, 
  • Assessing the eligibility and facilitating the processing of applications for visas and work permits from Government Technical Assistance personnel and other organizations that have an agreement with Government.

3. Legislative Oversight Functions

The tasks under this subcategory provide backstop legal services to the Division’s functions. The tasks are;
  • Analyzing, reviewing proposed legal provisions on revenue laws,
  • Drafting of Government Bills, Gazette Notices and Corrigenda, 
  • Providing impacts on disputes regarding interpretation of tax laws, 
  • Negotiations on tax related agreements, thus Avoidance of Double taxation Agreements and Investment Promotion and Protection Agreements, 
  • Advising on tax and non-tax policy reforms.
 
 
Director of Revenue Division
Director of Revenue Division
Mr. Crispin C. Kulemeka

 
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