Goodall dismisses World Bank ‘nonsense’ report on Malawi tax regime choking investment
Malawi’s tax regime remains prohibitive to attract meaningful foreign direct investments (FDI) and it impacts negatively on private sector, the World Bank has said but that has been dismissed by Treasury Czar Goodall Gondwe.
“The investment allowances currently in force are insufficient to attract or induce meangful investment , the industrial rebate scheme is cumbersome, with the short validity period for the industrial period for the industrial rebate license creating uncertainty among investors, the withholding tax creates unnecessary burden, especially for the smallholder farming community,” says the World Bank in its newly released Malawi Economic Monitor report.
Additionally, the report says actors in the financial sector claim that “policy uncertainity” regarding export bans for agriculture produce and weak judicial system as constraints preventing them from lending out to commercial farming and agri-business.
A discussion between the private sector representative and government has been recommended by the bank to remedy the situation.
But Minister of Finance, Economic Plannimg and Develooment , Goodall Gondwe said the country’s taxation system was recommended by the International Monetary Fund (IMF).
Gondwe said the World Bank report is “nonsense” because the taxation regime that Malawi is implementing now “was given to us by the IMF.”
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A man with ZERO credibility. The only thing that makes sense to him is where him, his family and DPP stand to benefit.
If Malawians are still deluded that the economy will one day improve and munthu wakumudzi nkusimba lokoma, with Goodall at the helm, then brace ourselves for more hardships, and wait till the 2nd coming of Jesus.
The list of his lies and scams is endless: redeeming his stealer colleague in the Maizegate, selling MSB, sharing billions with crooked MPs………., etc, etc,
What is even more dangerous is he still believes only him and his corrupt DPP have keys to solutions of our chronically ailing economy on the sickbed.
There is nothing good that these western organisations can tell you to improve your economy. Malawi is just like a deserted spoilled toilet with shit everywhere. You cannot prosper with imf or world bank advice, do they know how pipo are suffering in the villages? Malawi needs a proper leader to clean this toilet with strong bare hands. Imf or being former imf employee does not mean they are the best neither this Gondwe. They are all useless. If Gondwe is an expert on economy what relief has he brought to the poor then in these 5yrs? Goodal Gondwe ndi adada yes koma alibe mzelu, Peter Muthalika ndi abambo yes koma alibenso mzelu, elect them again from next year muzipeleka msokho mukafuna kukanyela mzimbuzi zanu muona.
WHT is the biggest nonsense!
Get away from these useless institutions…. Fuck the WB and IMF. They have developed no one. All they do is saddle us with debt peonage
This old called Goodall Gondwe is senile and is too old to run economic affairs is this troubled economy. We need ayoung energetic man or woman to take charge of this important ministry. Gondwe has dementia at his age. He doesn’t get it. Get rid of this government run by Zimmer frame carrying old men. It is a shame this country is being run by thieves and crooks like Gondwe and Chaponda
Biggest crooks in DPP leg government.
There is nothing that is fairly charged or priced in Malawi. In the SADC region Malawi has the highest tax rate , fuel prices, food commodities prices, too many levies but no subsidy on any thing. VAT on almost every thing. Malawians are living very hard lives. All governments, past and present have not formulated policies that are pro citizen empowerment. This has contributed to the rampant corruption that we see now..
Late Bingu challenged IMF on devaluation!! But FM takes IMF advice wholesale!!!!!
The reason why you were appointed was for you to be an independent thinker not a paper pusher who accepts anything that comes from IMF. Obviously IMF gave you rotten potatoes and unfortunately you accepted them
A MUDALA A GONDWE MWACHEKULA, LEKERANI WANYAMATA, ECONOMICS YINU YA OLD SCHOOL YOVWILENGE CHALU YAYI. KAPUMULENI, MUKACHEZYENGE NAWADZUKULU.
This is the problem Malawians we have believing that what world bank says is above what the i
IMF has said . Don’t forget Gondwe has worked there. These so-called big organisation will not be happy to see us moving forward. Since independence they have been dictating on us. , no good has come. They cheated Joyce Banda to devaluate the kwacha the results we know and you are hearing blaming people who have been in those organisations, who knows the secrets. Muzadyeka ndi Nyanja zomwe inu chifukwa cha kutengeka.
Ironically IMF is part of the World Bank Group. Their offices stand side by side in Washington DC. But Goodall saying that the tax regime is not nonsense because it was given to us by IMF is pathetic! Why can’t he advance his own argument? Don’t we have highly trained economists at the Ministry of Finance?
Am’mdala, you don’t nee( to be schooled that the best approach could’ve been to table your arguements on the table with WB rather than calling their findings as “nonsense” @ the same time expecting the same to fund you. Ridiculous! Mwayamba kulankhula mosefukila……… zayamba kuthina.
Whoever tells this government the plain truth, is regarded as the opposition party. I think, now the World Bank has turned into oppositon party in Malawi according to stiff necked dunderhead Gondwe. Seeing he sees not & hearing he hears not, neither does he understands the current situation on the ground. Dead man walking.
Dr. Gondwe, think of what’s best economic policy for Malawi. Don’t just accept what either World Bank or IMF tells you. Malawi is not a colony of anybody. I remember BINGU devised his own economic strategy suitable for Malawi and the country was indeed on a path to economic growth.
@Parallel market
Mukunamatu inu. Which Bingu policies worked ?. We were all there and we all bore witness to the nightmare Bingu ‘s policies created. I hate to say this but thank death surely under Bingu malawi was fast heading Zimbabwe way. You wonder what would have happened had Bingu completed his second term. Malawi was on a wrong and dangerous path during Bingu’s second term and you know it if you are not a DPP sycophant.
IMF & WORLD BANK have a common goal which is the same goal pursued by the big 7 nations; to remain powerful lead and control commerce. IMF’ agenda as it was formed was to lend currency to developing nations when they need it. But later it was advanced to the point of manipulating the commernce and economy of member countries with the aim of blindfolding them in the short run yet in the long run it is bad for the economy of the member countries. IMF will never tell you the truth about your economy it will always put a mask so that you do not see the agenda behind their approval of the tax rates and other economic factors. Goodal Gondwe you should be professional and use your school as an economist aswell as experience to judge who is right between IMF and Word bank. Look at your economy dont ask foreigners to control or judge the performance of your economy, do it yourself ask yourself questuons like, is my country moving forward or not? Are my people enjoying or not? How about an honest assessment of the life of foreigners and citizens, is it the same or foreigners are enjoying the implementation of the advices from iMF? Be wise and intelligent at the same time otherwise you are putting hardship on your own people and you dont love them for sure.
Goodall, I was respecting you but you know nothing about taxation. Malawi tax is 30% for Malawi company and 35% for foreign company whist UK is 18% and SA twenty something. tamamverankoni anthu oyipa a DPP.
This is a sovereign state, why do you still trust azungu to make policies for our country? These are ppo that destroys economy coz all they want is worshiping/ bootlicking them. Plz jack up
Just because it was given by IMF, which means in your eyes and wisidom, it is good? That’s why we giving you and your DPP an exit door come 2019 and put people who can be able to make decisions on behalf of Malawians and for Malawians. Matchonanu mmmmmm. Zero. Taluzananu.
This is not news to malawians who suffer from the heavy taxes the government has imposed on us. The economy can not grow under these conditions. How can you say its ok because IMF said so. These organizations have no good intention for us. We need to implement measures beneficial to us malawians first.
To be honest I don’t have faith in the government, the World Bank or the IMF. IMF just messed up Europe, why would someone believe their advice? It’s the blind leading the blind.
THESE PEOPLE ARE PUSHING /PULLING US LEFT AND RIGHT —
The problem of being old, tired, frustrated and beholden to the washington consensus. And of course the prospect of heavy electoral defeat doesnt help matters.
So because it was given by IMF you deem it to be inline with current trends? That the problem when you listen to every voice madala!!!!!!!!!!!!!!!!!!!!!!!
Its unfortune that this government is against any personal or organisation which tells them the truth. No one can deny that in Malawi the taxes are very high.
Bwana Gondwe, it does not mean everything prescribed by IMF should be taken, especially by you a renown economist, even if it hurts smallholder farmers. It is arrogance like you are displaying here that hurts the economy.
REALLY
Mr Gondwe, you should have taken IMF recommendations to WB for ratification because it seems your Ministry is being programmed by either of the two vampires. You r now torn between them. Who do you listen to? If IFM gives you copies of imported policies why don’t you challenge them with local facts you see on the ground? You cant call WB “nosense” that is being rude and biting a hand feeds you. What the bank said contradicts your master’s daily song that the economy of Malawi is doing well. The Bank is not an opposition party that you treat like that.
If a statement is ‘nonsense’ it remains so whether its from World Bank or whoever. If Dr. Gondwe calls it ‘nonsense’ it is his opinion. Let everybody respect that. Lets remain a GOD-fearing nation not a World Bank-fearing nation!!!!!!!
Spot on
It’s ridiculous to even want to invest in Malawi. You import something, be prepared to pay 100% or more in taxes. Maybe outside investors get a break in taxes but not us Malawians. Plus we get punished by MRA if they see that we’re trying to do the right thing not involving corruption. What a rotten country! A loan through Malawi banks is not even something I would even think of! You’re better off getting a loan from other countries.
I agree with you. I had a small trucking business funded through an overseas bank loan. The investment had better returns less for regressive taxation and corruption in our Malawi. I ran out of options but relocate my business to Zambia
i hate the word ‘nonsense’. please substitute
the right word to use instead of nonsense is uncommon sense
@mwale
Actually that’s the right word to describe his inept and morally empty government. It’s a government being presided over by a president who has unquenchable thirst and lust for receiving kickbacks. A president athuwa ndi ama deal basi a Malawi .
Dada Gondwe, getting taxation regime recommendation from IMF make it right for economy? By the way IMF has been blamed in so many countries for making wrong recommendations. i think you this already.
Kumutukwana munthu ofuna kukuthandiza?
Eya, ndi okha okhawa amene amatikakamiza kusatira mfundo zosatheka. Goodall watopa nawo, kkkkkk
The tax regime we are using now was given to us by IMF. Is that not another nonsense?
Actually that is the nonsense
For real. This man is not thinking properly. because of the current tax regime, to manufacture even a plain paper becomes more expensive than importing thereby making our country a predominant in importing.
@ Sunguru.
Actually that whole statement is a classic definition of nonsense.
The message he is delivering to World Bank is “you guys are confusionists” because IMF and World Bank are twins that impose unworkable solutions to poor economies, that’s my pick ladies and gentlemen.