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Reduce VAT From 16.5 % to 13 % MCCI Tells Govt

Banda- We have received overwhelming contributions Banda- We have received overwhelming contributions

Finance Minister, Felix Mlusu has for the past month, been out and about making pre-budget consultation ahead of a national budget meeting set for next week.

As part of their contribution to the process, the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says there are a few actions it expects from the coming national budget.

In its contribution to the budget, MCCCI says for example government has to ensure it has in place measures that propel business especially in the present environment with the Covid-19 pandemic which is affecting economies globally.

The private sector captains have further suggested to government to reduce borrowing locally and ensure there is balance in the provision of foreign currency in a quest to strengthen kwacha which is losing grip lately.

MCCCI also suggests scrapping off of import duty on spare parts by manufacturers, and reduction on Value Added Tax VAT from 16.5 percent to 13 percent to create demand because being a consumption tax will create disposable income.

Meanwhile, Tax and Business Expert, Kelvin Mphande says the reduction of tax would be a heavy boost to the country’s economy which heavily relies on revenues generated locally.

"This is healthy for the growth of businesses in a competitive market. More will pay taxes and Malawi Revenue Authority MRA will, in the end, collect more taxes," said Mphande.

Treasury Spokesperson, Williams Banda earlier this week, told us they have received overwhelming contributions which they will scrutinize.

Members of parliament are expected to start their meeting for budget deliberations beginning next week Wednesday.

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Last modified on Sunday, 09/05/2021

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