Tax evasion riles Malawi President Mutharika

Acts of continued tax evasion promoted by dishonest entrepreneurs have angered President Peter Mutharika who has challenged that Malawi can be financially independent of donors if every tax is rightly collected.

Malawian President Mutharika warns tax evaders

Malawian President Mutharika warns tax evaders

Over K50 billion in tax revenue is currently stuck in court cases as many of the businesses involved in the practice of tax evasion have sought relief from the judiciary through stay orders and injunctions.

Mutharika told MBC’s Mgeme Kalilani in the latest edition of Talk to the President that tax evasion is an evil that is fast-killing Malawi financially.

“We have to be patriotic because we rely on tax to build roads, schools, hospitals, pay salaries for the public sector, the Police, the Army, teachers, doctors and nurses. But still some people are selfish enough to think for themselves only by evading tax. These are the same people who are in the forefront crying out that there are no drugs in hospitals and that we have bad infrastructure,” said Mutharika.

He said Malawians should learn to pay taxes voluntarily and warned his government will do everything to root out tax evasion.

Mutharika then urged the business sector to embark on import substitution ventures to prevent unnecessary loss of forex through imports such as toothpicks, fruits, cotton buds, and bottled water.

Meanwhile, buyers across Malawi have been urged to request and verify fiscal receipts from Valued Added Tax (VAT) registered businesses for every purchase they make.

Fiscal Receipts are generated by Electronic Fiscal Devices (EFDs) to address under-declarations and tax evasion when it comes to VAT revenue collection.

Malawi Revenue Authority Enforcement Manager Bentry Khonje said, by simply asking for Fiscal Receipts when making each and every acquisition from VAT registered businesses, consumers will be exercising their rights and also be playing a huge role in enforcing tax compliance.

He said members of the public should not be cheated by traders that transactions without Fiscal Receipts reduce commodity costs.

“As consumers we must also learn to check if what is on the Fiscal Receipt is indeed what has been bought. This is because other VAT registered businesses do print out the Fiscal Receipt but with cheaper products in order pay less or no VAT. Let us be patriotic and encourage tax compliance by demanding Fiscal Receipts, always,” said Khonje.

According to law, every VAT registered business is supposed to visibly display its VAT Registration Certificate and it is expected of them to issue Fiscal Receipts for purchases made by consumers.

Khonje said MRA must promptly be alerted if VAT registered businesses are not issuing Fiscal Receipts.

He said tax malpractices can be reported to toll free number 847 for Airtel and TNM subscribers or 80000847 for MTL subscribers. Informants can also send their tips to the Centre through email address:[email protected] or fax to 0182 229.

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38 thoughts on “Tax evasion riles Malawi President Mutharika”

  1. mneneri says:

    Infact once your at MRA your considered rich coz there is too much corruption by employees who clear one out 3 containers.2 free and one container money is paid to them directly to share.in the end the indians will sale cheaper goods compared to a loval who jas less and paid more tax affecting businesses development. Nanji a FAST TRACK.THEY ACTUALLY STOP A BUS OR TRUCK AND WILL SHARE ALL MONEY RECEIVED.AMACHITA KUTI INU NDE MUPELEKA YOTI TINGOGAWANA MA 100 000 BASI OTHERWISE WILL VEASE KATUNDU AND WILL VHSRGE YOU DOUBLE. YOU JAVE NO CHOICE BUT TO LISTEN BASI

  2. mneneri says:

    The MRA WORKERS themselves start corruption. They will charge you more than necessary if you dont adhere to ehat they want.at the end you have no vhoice bit to hive them half and they give government half of what they receive. Infact if your honest they actually say “aona azikhaula ameneyu”indians will clear one container out of 3 and give wa MRA ndrama ya one container and they share yet small business suffer as a result malawian local business die early

  3. Tione says:

    Uyambe iweyo paying tax with your army of advisors and ministers. Also pay tax when you buy anything outside the country. There and the then will Malawi develop. How do you expect Malawi to develop when you are being paid millions from the taxes being deducted from the little salaries people who get in form of peanuts? Allowances, fuel, house rent momwemo without tax. Ife si makasu okulimira ayi. Teachers work very hard to produce presidents, ministers but ten years on they hardly reach K100,000 per month yet they underwent training. President, ministers have no training but once they get into office they earn so much which can pay more teachers. You said you are rich so pick up your green card and go uzikapanga mathanyula akowo galu iwe. Ife sitikukufuna kuno ku Malawi ukutibera. Shit! Anakuvotera ndi akumudzi as they are illiterate and do not know what you are doing to them. Uzipita kwanu apo ayi be ready for cardiac arrest and Gertrude will be a widow amnzako amukwatire chitsiru iwe..

  4. JIMMIE says:

    WOOOOOOOH WE DO PAY TAXES BT U ENJOY THEM AL WIT UR FAMILY EN FRIENDS

  5. Bulutu says:

    There is indeed tax evation particularly by politicians. For example the City Assemblies are not supposed to be without finances considering the numerous buildings in our towns and how much city rates are chargeable payable quarterly. These cities can even feed District assemblies which do not have enough resources. The Cities should be divided into zones and monitor how rates are collected and which area is not paying and then who are the landlord. City officials collect the money and use the law to back you.
    The problem is that some people are above the law. We need a Magufuli behaviour to move things. Let everybody pay duties where appropriate and no intervention, Malawi will move up!!!

  6. Kilemmbe says:

    I blame those who evade tax. The tax law is simply day light robbery of hard working Malawians. Just go to Mwanza and see how hapless cross border women are harrassed by MRA. I must confess I also use every tactic in the book(including under valuing imported cars). That is the only way to survive. I used to be a patriotic tax payer until my money was cashgated. Unfortunately these were peoplke who would boast and through expensive rounds at Afriucana. They were building mansions while I was struggling in a shack. They could tip waitresses with K20,000 without batting an eye lid. Then I saw an entourage of 2000 people going to the UN. I said what? Akamufune. Those evading tax must continue doing so. These people think our taxes if for them to enjoy as if we dont have any use for the money. Auponda!!!!!!!!!!

  7. The Partriot says:

    @ mkadamo, please read Malachi chapter 3 verses 8 to 10.
    Your excellency sir, you may be surprised that the people close to you are the ones in the forefront in tax evasion. The so called wellwishers of Asian origin and political leaders are using their connections with the ruling elite to evade tax!
    Accountabilty is also a problem, the general feeling is why pay taxes when the same will be used to castigate us through MBC tv by the ruling elite? The same taxes will be used by the ruling party to hold a “development” rally where all of us in opposition will be called names and threatened to be delt with by our own President? The same taxes will be used by the ruling elite to buy gas guzzlers and will be used to buy 1000 liters of fuel per month for each cabinet minister?
    The general feeling is that while all of us are being asked to pay taxes, there are a few people, including you, your excellency who are either tax exempt or evade tax, who benefit the most from our hard earned tax! And that feels very bad!!!!
    Being the highest ranking civil servant in the country am sure you can do something about all the above, otherwise just calling for more taxes without equity and accountability is like putting more water in a leaking bucket!

  8. DR TONDE says:

    MK577B will go a long way in boosting the National budget. MK298M will buy a lot of maize instead of 8 pages of a magazine article to “promote Malawi’s tourism

  9. Nambewe says:

    Yes I agree with you sir.

    One of the big moves that Malawi needs is to teach it’s citzens that everything costs money! Government is for us! if we dont put the money into government then Government can’t run!

    Donors should now bw a thing of the past! malawi can stand on its feet if only we learned how to manage our money, our time, our lives! its up to every single malawian to make this work! Bwana please puit in schools on the syllabus understanding government and self accountability and ,management, teach the children so we can chnage Malawi smind set.

  10. KALINDO says:

    MR PRESIDENT, YOU WANT TAX MONEY FOR WHAT? WE’LL START PAYING TAX ONCE BOTH CASHGATE CASES COMES TO AN END.

  11. KALINDO says:

    KKKKKKKKK KKKKKKKKK LET THE MALAWIANS DO THEIR BUSINESSES PEACEFULLY. THEY HAVE BEEN PAYING TAX FOR 51YEARS, CAME YOU AND YOUR BROTHER BLOW IT. YOU BETTER GO AND REST NOT TO OPEN YOUR MOUTH FOR NOTHING. NONSENSE

  12. Kango Herbert says:

    Him the President should pay TAX first & not enforcing the law on OTHERS he has to set an example.

    Just imagine if he bought 20 vehicles all duty free rubbish………….!!!!!!!

  13. Concerned says:

    Poor Government, poor Governance, poor pple in Authorities, poor drivers. Honestly looking at the current economic Situation in Malawi i think TAX and VAT are not good subjects to be tabled lest it may provoke pples anger.

  14. Chigawaneni says:

    Koma ndiye tikufinyidwa ndi misonkho imeneyi anthufe, bwana president. Inu ndiye kumangomva kukoma dziko lomwelino! Tidalakwanji anthufe? Mulungu lowelerani ngati nkotheka.

  15. Dzuka Malawi says:

    Its a two way thing, you pay PAYEE, VAT, Duties for the government to provide the social services, but when you fail sick, you go to the hospital, they tell you, the gvt hospital has no medical drugs, then you ask yourself, Why am i paying taxes for? For the President to hook 115 peaple to Washington, for the UNGA? Or for him to buy a mobile toilet? Do we need to borrow Billions of kwachas to construct toilets in the markets around Malawi? 68Bn for roads mantainance? Really?

  16. Truck says:

    PEOPLE PAY TAX THEN THE GOVERNMENT PEOPLE STEALS THE SAME TAX MONEY THROUGH CASHGATE SO WHO IS FOOLING WHO

  17. zavuta mwanamavi says:

    This reminds me of a thief who got angry at me because after sneaking in my house at night while I was asleep, he found nothing to steal in my living room. He woke me up and furiously told me that I should start furnishing my house. I said whaaaat??? As a teacher I couldn’t afford. Fellow Malawians, thieves don’t like it if you don’t have what they can steal from you. Alibe ndi manyazi womwe bambowa.

  18. Dwambazi says:

    Why should we pay tax when you use the money to buy yourself a luxurious motor home so you can comfortably dump your biological waste while x- crossing the poorest nation in the world Mr President?

  19. Manet says:

    Mr president, tsiku limodzi lokha musanachoke pa mpando mudzayankhuleko za nzeru. inuyo mwagula galimoto lodula, mwahonga newspaper ndi ndalama zankhaninkhani, munaba Mk577bn, ndiye mukunena kuti chani?

  20. Afera says:

    This bulldog is crying for tax because he uses all the tax money to run his party, DPP. Why should I assist thieves in tax collection mechanisms when it cannot help the poor Malawian in the village, but his party pot bellied idiots?

  21. Wa Mathanyura says:

    hehedeeeeeeeeeeeeeeee tamuoneni mathanyurayu, you want us to be paying taxes kuti uzinjoyera ndi nkazi wakoyo azikagulira ambi shubaba ndi ma lipstick eti,,, nawenso uzipereka msonkho uone mmene zimapwetekera

  22. DOLO says:

    THE TAX EVASION STARTS AT STATE HOUSE. BEN PHIRI HAS BEN BRINGNG IN CONTAINERS WITHOUT PAYING TAX. MUKHITO THREATENS MRA WHEN THEY GO FOR THE INDIANS. ROSA MBILIZI IS PART OF THE SCUM AND MUTHARIKA CONDONES IT BECASUE SHE ALSO HELPS PETER IN MANY WAYS IN TX EVASION.

    MALAWI IS ROTTEN INDEED. MUSATINYANSE,

  23. yankho says:

    Its better to evade tax that to remit the money, kuti muzitola ngati ngumbi, at least the entrepreneurs are ploughing back the money into the business. Inu okubanu mumakangomwera nkumadyada

  24. Masozi Mwenifumbo says:

    “Therefore, Render to Caesar what belongs to Caesar, and to God what belongs to God,” says Jesus Christ our Lord and Saviour. Obey Him, and you will live long on earth and enjoy eternity in His Eternal Kingdom. Reject Him and His Words, and you are SURELY buying your ticket to Hell and to the Lake of Fire ALL ETERNITY. ……………………………………………………………………………………………………………………………………………… Therefore, the Lord Holy Spirit says through Apostle Paul in Romans 13:1-10, “Let every person be subject to the governing authorities. For there is no authority except from God, and those that exist have been instituted by God. Therefore, whoever resists the authorities, RESISTS WHAT GOD HAS APPOINTED, AND THOSE WHO RESIST WILL INCUR JUDGEMENT. For Rulers are not a terror to GOOD CONDUCT, BUT TO BAD. Would you have no fear of the one who is authority? Then do what is good, and you will receive his approval, FOR HE IS GOD’S SERVANT FOR YOUR GOOD. BUT IF YOU DO WRONG, BE AFRAID, FOR HE DOES NOT BEAR THE SWORD IN VAIN. FOR HE IS THE SERVANT OF GOD, AN AVENGER OF WHO CARRIES OUT GOD’S WRATH ON THE WRONG DOER!!!! Therefore, you one must be in subjection, not only to avoid God’s wrath, but also for THE SAKE OF CONSCIENCE!!!! For because of this YOU ALSO PAY YOUR TAXES, FOR THE AUTHORITIES ARE MINISTERS OF GOD, ATTENDING TO THIS VERY THING. PAY TO ALL WHAT IS OWED TO THEM:TAXES TO WHOM TAXES ARE OWED, REVENUE TO WHOM REVENUE is owed, honour to whom honour is owed. OWE NO MAN ANYTHING, EXCEPT TO LOVE EACH OTHER, FOR THE ONE WHO LOVES ANOTHER HAS FULFILLED THE LAW. Fore the commandments, “You shall not commit adultery, You shall not murder, You shall not murder, You shall not steal, You shall not covet, ” and any other commandment are SUMMED UP IN THIS WORD: “YOU SHALL LOVE YOUR NEIGHBOUR AS YOURSELF.” LOVE DOES NO WRONG TO A NEIGHBOUR; THEREFORE LOVE IS THE FULFILLING OF THE LAW.” ………………………………………………………………………………………………………………………………………….. LET US LOVE OUR COUNTRY AND OUR PEOPLE, THEREFORE, BY COMPLYING WITH THE TAXATION LAWS, EVEN AS GOD HIMSELF IS COMMANDING US, AND IT SHALL BE WELL WITH US AND FOR MALAWI. LET NOT THE EVIL THAT OTHER PEOPLE ARE DOING BE USED BY THE DEVIL TO CAUSE YOU TO DO EVIL AGAIN, CAUSING HIM TO ADD YOUR POOR DISOBEDIENT SOUL TO HIS CAPTIVES AND HELL-ENTRANTS!!! OBEY GOD AND LIVE!!!! DENY HIM BEFORE PEOPLE NOW AND PERISH IN HELL AND ETERNALLY IN THE LAKE FIRE THEREAFTER!!!! THEREFORE, CHOOSE LIFE AND NOT DEATH, A BLESSING AND NOT A CURSE O MALAWI!!!! AMEN!!!! AND AMEN!!!!

  25. vumbwe ameneyu,tipereke misonkho iye azitenga mudzi wakwawo ulendo ku UN kumaka shopa zowona .NDikunena pano achina malopa ali bussy kumanga ma hotel ku mangochi uku ndi 2yrs siyinathe,ndalama zake ziti?anachakachika pakatipa lero azitenga kuti?kumatikakamiza kuti tipereke misonkho ,tikadwala kuchipatala kulibe mankhwala pomwe iwo akadwala akukwera ndege kupita kunja chosecho ndalama za misonkho yathu zowona?sizikubalancer bwana ibu pamenepa.?

  26. Chakufwa Chihana's Compatriot says:

    Peter Mutharika can you please tell Malawians whether it ‘riles’ you or concerns you that you and your brother Bingu had paid Tax on the billions which you and your brother Bingu looted or stole from Malawi?
    Simple question. Please answer it.
    For no Malawian can take a thief like you speaking about medicines being stolen or tax evasion because you Mutharika are yourself a tax evader and a thief.

  27. Master says:

    Peter Mutharika, bring back 577 Billion Kwacha which u and your brother bingu stole from us, then i will start paying taxes please

  28. Concerned Citizen says:

    If we want to generate more revenue as a country, then politicians (Members of parliament, ministers etc.) should also start paying tax in form of PAYE.

  29. gringo says:

    ministers and MPS are not exemplary

  30. lionel says:

    Its amazing how this govt is bothered more by tax evasion than by the fact that they are failing to account for public funds to the extent that they have lost donor funding.

  31. kanchenga says:

    Mr president you are the reasons we evade tax When I am sick I go buy medicine because Govt clinics have no makhwala . My VEHICLE breaks down quickly because the roads are bad. My working capital is affected by withholding tax that govt refuse to reimburse when you have presented tax returns AND there is need to reimburse. So how do you survive . Well vat yemweyo
    And by the way you think it amuses us to work had and pay tax so you can take you fox for shopping in New York. You must really be a duck. A seating one indeed.

  32. Benjones says:

    Malawi is a list country. Forget it we can never rebuild coz we have to many weakness.

  33. smart says:

    start showing an example by paying tax yourself.you should feel how it hurts to pay may be you,peter can stop stealing our miserable saleries thru taxes.

  34. dzambo says:

    inunso a president muyambe kupereka tax pamodzi ndi ma mp anuwo! Why through the burden to poor malawians only when you are swimming in reaches.

  35. mkadamo says:

    Kanyimbi,you cannot avoid PAYE and VAT ,however,there is no scripture which encourages you to pay tithe

  36. Makiyolobasi says:

    Malawians evade tax because it is abused by politicians and their cronies. Look at cashgate, isnt that not demotivating enough looking the pathetic state of our country? I would rather give the money to my relatives who need it most than pay tax which I know will be stolen and partied on by cashgaters!

  37. sam says:

    The fact remains that if the economy is good , businesses do good and pay more taxes, but with the current state ofthe economy companies are making losses, so it is difficult to increase revenue. If you fix the kwacha then companies will do well and taxes revenue will increase and zero budget deficit can work. Koma nsopano kwacha aku agwa ma company wina ayambe ku nseka ndaki PTC

  38. Kanyimbi says:

    Please those of us who pay PAYE should be exempted from VAT this is inhumane just imagine: PAYE,VAT,Tithe etc from one salary.

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