The Human Rights Defenders Coalition (HRDC) has urged government to decisively deal with individuals and organisations who have evaded tax, a development that affects execution of government’s functions.
Tax evasion entails taxpayers deliberately misrepresenting the true status of their affairs to the tax authorities to reduce their tax liability, but Malawi Revenue Authority has not quantified how much government loses in tax evasion every year.
In a statement issued on Sunday titled Procastination in Decision-making Hurting Malawians, HRDC claimed to know some Asian-owned firms and individuals who have avoided paying taxes.
Reads the statement in part jointly signed by Gift Trapence, HRDC national chairperson, Luke Tembo, HRDC national coordinator and HRDC regional chairpersons Happy Mhango, Madalitso Banda, Masauko Thawe and Billy Mayaya: “Some have either run away or were deported. With the change of government, it has come to our attention that some are using senior Tonse [Administration] officials to come back to plunder in Malawi, avoid tax and externalise our wealth.
“We would like to warn government that as HRDC, we are watching and monitoring these conspiracies and we will expose them.”
Trapence was not immediately available to provide names of those who allegedly escaped or were deported for evading tax.
But in May 2017, an Indian national Chandrashekar More, who is said to have set up an edible oil extraction plant in the country, was deported following his arrest on alleged tax evasion charges and returned to India, having secured permission from the country during the same month.
On corruption fight, HRDC commended the Tonse Administration for trying to match words with action and cracking down on those suspected of corruption with particular target on those in the previous regime.
It said a few high-profile arrests and court appearances occurred, but since then, the anti-graft fight momentum has fizzled.
“Actions, or lack thereof, including pushing through Parliament enabling laws such as how the director general should be appointed and dismissed as well as removing the provision that the bureau should seek authority to prosecute from the Director of Public Prosecutions, remain an age-old sticking point,” reads the statement.
President Lazarus Chakwera has always committed to ensure that ACB works without interference from his office.
Commenting on last week’s 28 percent increase in fuel prices, HRCD argued that is a good example of how procrastination in decision-making can cause harm to households, firms and the national economy.
Agreeing with Consumers Association of Malawi executive director John Kapito who said the President delayed in appointing boards of parastatals, HRDC said Malawi Energy Regulatory Authority (Mera) could not act on price reviews even as determining factors such as landed costs, global oil prices and the local exchange rate were rising.
Mera spokesperson Fitina Khonje attributed the increase to the rise in fule landing costs and the depreciation of the kwacha b 3.37 percent since May this year.
