Goodall under pressure to remove tax on milk from Malawi budget

Finance minister Goodall Gondwe was on Thursday under pressure from a cross section of Malawians to remove tax on milk which has pushed milk prices up, threatening the health of Malawians and the economy.

Gondwe: Malawians want tax in milk out

Gondwe was meeting a cross section of Malawians and other stakeholders in Lilongwe in pre-budget meetings.

The issue was raised by Malawi Milk Producers Association chairman Herbert Chagona who told Gondwe that the 16.5% VAT on milk has pushed milk prices up beyond the reach of most ordinary Malawians and would knock milk producers out of business.

“As I am speaking now, we have bulks and bulks of milk which we are failing to sell because of prices,” he said.

Others said the government should know better that if it wants a health nation fit to participate in development activities then it must remove tax on milk to push prices down for everyone to afford.

Gondwe said he was there to solicit views on what people want to be in the next budget therefore cannot make promises that tax on milk would be removed or reduced.

He also conceded that education standards in public schools continue to dwindle because of lack of adequate funding.

Gondwe said the government was drafting a new Malawi Growth Strategy paper which will make education another priority area and get enough funding.

He said education would be highly funded just like agriculture and health sectors. During the meeting, people complained of the high cost of living and government’s waste of money through the farm input program.

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Bololo Sakondamadzi
Bololo Sakondamadzi
5 years ago

Milk is a basic food designed by the Creator for the nourishment of the young. Milk is manufactured by nature ( the cow) not by any factory made by man. The factories you see are there just to extend its freshness. Imposing a tax on milk is as bad as taxing water and the air we breathe. By taxing milk govt. is forcing infants to pay this tax with their lives. A govt. with a vision would not do this because if the kids will not die Malawi will be a country of weak minded people not of thinkers. Lack… Read more »

Baba wa boy
Baba wa boy
5 years ago

Water is taxed all over the world.

VAT is value added tax, if value is added to the Milk, that is what is taxed.

If natural milk costs MK 1000 per litre, and you sell it for MK 1200 you pay tax on the MK200, Where is the problem?

Kanthu Ako!!
Kanthu Ako!!
5 years ago

Malawi is in real trouble!!

Minister of Finance on tour soliciting idea that could shape the Budget.

Ideas from Malawians worth of news:

1. How good is your health
2. Stop taxing milk.

Are you kidding me? And we say Muthalikas Government has no ideas? The whole country has no ideas.

Development is not just road building, private citizens building good houses is part of development.

5 years ago

Watha uyu, sakudziwa zopanga tax.

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