CDEDI threatens anti-Tonse demos: Gives govt 7 days to scrape off punitive taxes
The Centre for Democracy and Economic Development Initiatives (CDEDI) has given the Tonse Alliance-led government seven days to remove “punitive taxes” on essential goods and services or face nationwide protests.
Addressing journalists in Lilongwe , CDEDI executive director Sylvester Namiwa said they were concerned with neglect of duty by the Tonse Alliance to protect and promote the well-being of Malawians, including the underprivileged communities.
Namiwa said introduction of punitive tax regimes that have ended up punishing the poor people through loss of jobs, increase of prices for basic goods and services are a clear indication that the incumbent government does not care about the welfare of its citizens.
“A recent example is the introduction of 16.5 percent Value Added Tax (VAT) on cooking oil, a development that has pushed up the cost of living, and has turned most poor people into scavengers,” said Namiwa.
He said average Malawians are finding it hard to afford locally produced cooking oil following the skyrocketing of prices.
Prices of cooking oils have risen by an average of 100 percent since Tonse took over power from the erstwhile Democratic Progressive Party (DPP).
Namiwa said it is for this reason that CDEDI is challenging all Malawians of good will to join a crusade to force the Tonse Alliance Government, under President Dr. Lazarus Chakwera, to start championing pro-poor policies in order to protect the marginalized from hazardous smuggled edible oils that have flooded the local market.
“CDEDI has been forced to take this route, after we’ve realized that government has shut the door on the poor people, if the admission by the Director of Revenue in the Ministry of Finance, Mr. Kenneth Matupa is anything to go by. During a virtual meeting that was held recently between CDEDI and the ministry, Mr. Matupa made it very clear that the ministry was aware that the introduction of VAT on cooking oil has pushed up the prices of cooking oil on the local market, and that this has in turn opened up a market for smuggled oil products, whose safety nobody can guarantee,” he said.
Namiwa disclosed that Matupa admitted that there have been lapses in containing smuggling in general, not only on cooking oil, but on various products because the malpractice is being perpetuated, in most cases, by the influx of foreign nationals that are living in Malawi illegally and are doing their illegal businesses in undesignated premises.
A recent study by the Mangochi District Health Office on food fortification revealed that most people are consuming foods that do not contain the required mineral and vitamins, by indicating that out of the eight cooking oil samples which were scrutinized, only one contained the required Vitamin A.
Namiwa said after analyzing the outcome of the meeting, CDEDI feels there is either general neglect of duties by some officers in the law enforcement agencies responsible for containing the influx of both illegal goods and immigrants into the country or the Tonse Alliance administration is deliberately introducing the punitive tax regimes in order to suffocate the local industry in an attempt to bring in their own preferred business interests,” said Namiwa.
“The latter can be true, looking at the recent closure of private companies such as the Kanengo Tobacco Processors Limited in Lilongwe, and the announcement by Bakhresa Group of Companies that they are closing their soap making plant in Mzuzu. It appears the plan by the Tonse administration is working out perfectly well, since no government official, not even the responsible ministers for Trade and Industry, has come out to make a statement on this very sad development about the closure of companies in the country,” he said.
Namiwa assured that as an advocacy institution on human rights, CDEDI remains committed to stand for the voiceless and that their call for the immediate removal of VAT on cooking oil is aimed at protecting the rights of the vulnerable and marginalized communities.
He reiterated that the introduction of tax on cooking oil has made the poor people even more miserable, and has posed a great threat to the survival of the local industry, which besides creating jobs, is also bringing in the much-needed foreign exchange through the sale of the soya cake, a byproduct of cooking oil from soya beans.
“For the records, from such exports, the country realizes a minimum of US$60 million annually, and the industry is providing permanent employment to 1, 600 people and 800 casual labourers. If the Tonse Alliance administration is really serious about uplifting the livelihood of poor Malawians, then let them start implementing policies that really resonate well with the local people, such as scrapping off the 16.5% VAT on cooking oil; a product that is commonly and mostly used by the local people in the villages for small scale businesses such as making mandasi, locally made cakes, kanyenya (kebabs),” said Namiwa.
“CDEDI is, therefore, giving the Tonse Alliance Government seven (7) days to scrap off VAT on cooking oil, and find other means of generating revenue from the local manufacturers; commence a review of its tax regime in order to revise all the taxes that are chocking the local industry and hitting hard on the ordinary Malawians, 80 percent of whom are living in rural areas and depend on subsistence farming. Should this demand land on deaf ears, which is mostly the case with the current Tonse Alliance administration, then CDEDI will be left with no choice but to mobilize all Malawians of good will to hold nationwide demonstrations, until such demands are adhered to,” he warned.
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Who are you fighting for?
Chakwera thinks football ⚽ is more important than education that’s why he has given K1,000,000.00 to every player while he is refusing to give some little covid allowances to our teachers. But what is Chakwera’s head made of??
Cooking oil Companies Manufacturers Cartel/Lobby/Syndicatr what ever you call them they are Trying all sorts of Organization to write articles and organise Conferences and give Speeches in VAT on Cooking Oil and all these Organisation are given Handouts from these Manufacturers or Bribe the Officers for Such Articles and Press Release
Since VAT has been Re introduced on Cooking Oil all Manufacturers are NOT able to Compete with the Imported Cooking Oil which is Better in Quality and Price
Malawi Got should NOT reverse the Decision on VAT on Cooking Oil
Seeking cheap fame.idiot.
Cdedi is a joke.
Namia tsopano. Fighting for the tribe
How come this article has attracted no comments? Let me be the first one to comment:
1. Is it true that a 16.5% VAT on cooking oil has led to a doubling of the price? CDEDI Economists, tell us more on the dynamics of such price rises. Also list other products that have been affected
2. Is it true that the VAT has led to an influx of low quality imported oil? Does the VAT apply selectively to made in Malawi oil or does it apply to all cooking oil sold in Malawi?
3. Is scrapping off the VAT going to stop imports of foreign made oil? Or should we be calling on more strict measures by MRA to secure the borders, MBS to enforce quality standards and Ministry of Trade to address trade licensing and flush out unlicensed traders?
4. Where will the demos be held here in Zomba? I want to bring myself, my family and my dog. Please CDEDI send us some masks so we can be safe during the demos
Wakutuma Nankhumwa ndi Joseph Mathyola Mwanavekha? Where were you when DPP terrorised us with Carbon Tax? Where were you when DPP were busy stealing money? Where were you when DPP packed the civil service with Mlakhos? Where were you when DPP terrorised northerners with the quota system of education? We know you work for dpp and you fail. Dpp sidzabwera so. It’s finished.
Useless Namiwa or Idiot Namiwa
Tiye uko mbuzi iwe.
My problem is not paying tax almost all countries pay tax, in the UK you pay TV licence just for owning a TV. My problem is how my tax is used after I paid. I have no problem my tax being used on AIP that works and Firts K100,000 of my salary is tax free, ADMARC is soon starting to produce cooking oil which will be very cheap than the rest who are making an issue out of nothing.
So far so good my problem was tinawachotsa aja amatenga dziko ngathi knola lawo la nkhuku mpaka wa ku MBC uyu kutasa ndi azikazi athu.
By the way where were you when ajawa imported cement duty free, you have never called for protests kuti atibwezere misonkho yathu.
Shouldn’t these calls to scrap off taxes made when parliament was meeting during the last sitting before budget consideration? I thought is the responsibility of the parliament to make such laws on taxes.
Anyway, let’s hope there will be a solution
Mr. Namiwa… working so desperately to look relevant!
This Govt!! Eishhhh!! Mavuto alipo.
This is the best way to go otherwise this Tonse Alliance is a useless government that is not placing the hearts of Malawians as a priority. The stupidity with followers of this dirty government is that they feel Namiwa is doing it on behalf of DPP, which to me is not. Its about understanding the economic situation in Malawi and how the government is mercilessly destroying its own people. Go on CDEDI. The Consumers Association, what are you saying in this? How about Human Rights groups? You are just sitting phwiii.
this is deluded guy, he think govt can undone something agreed in parliament.. munthu ameneyu kungofunika kumugwira ndikumukwapula, asatitemnge amalawi kukhala opusa,
This dude indeed needs bare ass spanking. What irritates me most is that he gives opposition to Tonse Alliance policies a very bad name. Mxii!!
Ganyu ndi yovuta. Last time it was ganyu protecting the regine and now its gangu attacking a regime. But surely cooking oil is high by does not require demonstrations but dialogue. Note that members of parliament deliberated on this Tax vat on cooking oil as presented by MRA such that our MPs are also b brame. I rest my case.
It is very unfortunate that the leadership we have is negating its own responsibilities. Being a leader entails that one has to have multifaceted abilities, if not then he should be able to delegate. Here we are almost 9 good months in office but it would seem his “Job Description” is yet to be mastered.
I personally do not blame CDEDI for going that route. If someone can only adhere to the usual norm ‘Kumva ili m’mutu’ then go by that – Yeah! law of the jungle. There are too many distortions in this government. You at times wonder if they are aware that in every organization, institution, entity, group etc there is well tailored, designed and thought-through mechanisms called “Standard Operating Procedures” that should be followed in order to have certain tasks, missions, goals, objectives fulfilled? Invite the military personnel and they will take through the “How to do it bit”. Mind you Administration, Management, Planning are extentions of the military ideology, that the civilian world takes a leaf from the military practices. Try those retired Generals who are not necessarily tired, to assist you in running some of these departments. Being retrospective till when???
How much Money is offered by Cooking Oil Manufacturers to CDEDI chairperson as CDEDi is speaking on Behalf of NOT Malawians but Cooking Oil Manufacturers Cartel Syndicate who are NOT Malawians but all Foreginers
Were was CDEDi since Independence of Malawi till Year 2017-2018 As Since VAT was introduced in Malawi VAT has always been there only in DPP Regime it was Removed for 2 to 3 Years and During All Cookout Oil Companies Made Huge Profits and Not even Paid Taxes to MRA
CDEDI should do there Home work and Check with MRA the Loss of Taxes they were NOT paid by Cooking Oil during these Years Of Exempted VAT on Cooking Oil
Koma Namiwa ulipachi ntchito chotumidwa mwa uchitsilu. You literally don’t think your actions thoroughly
And who will match with this undercover cadet?
This the same cadet who spend sleepless nights castigating the president that he is not doing enough to develop the country and yet for 5he government to develop the country it needs money …..
Cadet Namiwa please do not just threaten the president with demos but also tell the government where they can get the free money to implement the development that you always mourn about….
I find this Namiwa guy funny.
Mr Namiwa why cant you be oobective at once. You seem to be an agent of sone people that why you are nit getting your facts right before your stupit press release. Am a Malawian, and yes price of cooking oil has increased but not 100 percent as you are saying . Which cooking oil do u buy? Kukoma is selling btn 7.5- 7.8 and before VAT it was 4.8, 4.9. Using ur stupit head is the increase 100 percent? we agree govt should remove the VAT koma osamanena bodza. And one thing you have to know tax legislation has to pass through parliament, i dont think they can just change it overnight. This will likely be change during next sitting of parliament which is likely to somewhere late May or early June. Uzikambako za nzeru nthawi zina iwe. Anyway demo ndi ufulu.go and demostrate.
You mean you can not see what Namiwa is fighting for, then you must be sick right in the head. Fuel cost is up, inflation is up, one million jobs have not been created, cost of passports is not K14,000, covid money 6.2 billion Chakwera and his team shared amongst themselves, 6 July cerebrations money were pocketed by Chakwera and his team and is quite, more billions were also shared between Chakwera, Chilima and his lawyers in the name of legal fees, cabinet is full of Chakwera’s relatives and kinsmen (nepotism at its best), cost of living has now gone up. Players are given 1 million Kwacha each while teachers are not taken care of and is the reason why they are on strike, road constructions and developments of national importance are on stand still, public money is spent on witch hunting to silence those with opposing views, the list of unfulfilled promises goes on and on. Is this what Malawians voted for? Chakwera and his team have failed to rule this country and the best he can do is to step down. All these things have surfaced within one year. Although, I come from the Centre but time for talking against DPP and the Lhomwe tribe is over. Talk about what Tonse Alliance government is doing for the Malawians. It is time to deliver not to waste time with the past government. These people destroyed Malawi with violent demonstrations and now they are officially destroying Malawi after kulanda Boma mwaupandu. If the elections were fair, being tripatite elections, parliamentary and counsellors election were to be nullified and redone as those of of the Presidency. There is no way you can say these stools are mine but the urine is not.