Saturday, April 17, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result

Govt asked to reduce excise tax on alcoholic beverages

by Enelless Nyale
18/02/2020
in Uncategorized
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has asked Treasury to review excise tax on companies producing alcoholic beverages if they are to survive the turbulent economic environment.

MCCCI chief executive officer Chancellor Kaferapanjira said this on Friday in Lilongwe when he appeared before Parliament’s Budget and Finance Committee.

RelatedHeadlines

Phyzix flows in ‘flaws’

Agricultural policy filters in Malawi

Don’t plan to bite more than you can chew

He said companies such as Chibuku Products Limited (CPL) and Castel Malawi Limited are on the verge of collapse due to high excise tax Treasury imposed on their products.

Kaferapanjira | The Nation Online
Kaferapanjira: There is a boom in illegal tradings

Kaferapanjira said the local firms are failing to compete with imported products as tax regimes in neighbouring countries are fair; hence, enabling them to export to Malawi and other countries at an affordable price.

He said: “Our businesses are facing challenges, especially in manufacturing and are on the brink of closure.

“For example, Chibuku Products Limited and Castel Malawi Limited are facing challenges from competition, which is unfair because the companies that are exporting into Malawi, their products are originating from countries which have lower taxes.

“For example, Chibuku which is at 40 percent excise tax in Malawi is only at seven percent in Zambia.”

Kaferapanjira said as a result, there has been a boom in illegal trading platforms, taking advantage of the country’s tax regime which is promoting smuggling and putting local manufacturers at a disadvantage.

He said CPL is proposing a downward revision of excise tax from 40 percent to 25 percent.

“Castel seeks a downward revision of excise tax from 65 percent to between 35 and 40 percent, or suggests that if the tax is to be maintained, it should be productive cost and not on sales,” said Kaferapanjira.

Parliament’s Budget and Finance Committee chairperson Sosten Gwengwe said it is high time government introduced tax regimes that can make local firms competitive.

He said in the long run, the effect will not only be on the products, but also employees who will lose their jobs.

Said Gwengwe: “Tax rates for our companies are not competitive. It’s time government introduced tax reforms that will be competitive regionally to keep and attract new investments.”

He said there is need to appreciate that when investors are scouting for destinations for their investment, they look for locational advantages which government needs also to consider. In the 2019/20 fiscal year, government introduced tax measures to encourage growth, industrialisation and promotion of human rights, particularly on measures to support people with albinism according to a statement Minister of Finance and Economic Planning Joseph Mwananvekha presented last September in Parliament.

Avatar
Enelless Nyale
Previous Post

H1 budget deficit Jumps to k165.7bn

Next Post

Not Tabitha, french Club lyon rebuffed

Related Posts

Phyzix has dropped a new album ‘Flaws’

Phyzix flows in ‘flaws’

April 17, 2021
Agriculture is touted as the economic backbone of the country
National News

Agricultural policy filters in Malawi

April 16, 2021
Your personal finance

Don’t plan to bite more than you can chew

April 16, 2021
Next Post
In Africa’s best XI: Chawinga

Not Tabitha, french Club lyon rebuffed

Opinions and Columns

Your personal finance

Don’t plan to bite more than you can chew

April 16, 2021
My Turn

A cry of an up-and-coming musician

April 16, 2021
Rise and Shine

Conducting personal career reflections

April 15, 2021
Business Unpacked

Pre-budget consultations should strike a balance

April 15, 2021
https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf

Trending Stories

  • Has over 25 cases to handle: Silungwe

    Chakwera, AG meet over MEC

    0 shares
    Share 0 Tweet 0
  • Heartless plunder

    0 shares
    Share 0 Tweet 0
  • Govt plans to relocate all refugees

    0 shares
    Share 0 Tweet 0
  • Made See needs help—Namadingo

    0 shares
    Share 0 Tweet 0
  • Which way MEC?

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.