Moam hails 15% tax reduction

The Minibus Owners Association of Malawi (Moam) has commended government for reducing import duties for vehicles carrying not less than 42 people.

Malawi government, in the 2013/14 budget presented by Ken Lipenga has reduced import duty to 15 percent on motor vehicles of seating capacity of 11 to 31 persons, as well as those with seating capacity of 32 to 44 persons regardless of engine capacity and year of make.

In addition, excise tax has been reduced on motor vehicles of seating capacity of 32 to 44 persons depending on year of make. There will be no tax on new and used motor vehicles not exceeding eight years, 10 percent for used motor vehicles exceeding eight years but not exceeding 12 years and 25 percent for used motor vehicles exceeding 12 years.

In an interview on Monday, Moam secretary general, Coaxley Kamange said the association was pleased that government has considered their businesses.

“We are thankful to government for considering our requests. We know that government still has to implement some reforms and for that reason, our other appeals are yet to be met.”

“Most minibuses have become old and with the rising cost of things, maintenance costs have also gone up. So, for the safety of passengers, we need to replace the minibuses and cut down on maintenance costs which is for the good of customers,” he said.

He added that with the reduced import duties, competition will be high on the market and that will also be for the benefit of the passengers.

“The minibus fares will be competitive because there will be a lot of minibuses on the market. Competition is always good for customers,” said Kamange.

In an earlier interview, Moam expressed that the number of minibuses plying on the country’s roads have decreased by 10 percent, attributing the decline to the devaluation of the kwacha.

The Joyce Banda administration devalued and floated the kwacha as one of the measures to fix the country’s ailing economy.

Since the dawn of market liberalisation in the 1990s, there has been a surge in the number of minibuses plying on the roads of Malawi.