Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says the tax policy measures as outlined in the K1.7 trillion national budget are punitive.
MCCI chief executive officer Chancellor Kaferapanjira says whilst there have been a few positive tax policy measures, over all there are more punitive measures than positive ones.
“It is very clear that the intention is to raise as much money for government as possible and at any cost,” says Kaferapanjira.
He says this is a clearly reflected in the estimated domestic revenue of K1.425 trillion, consisting of K1.369 trillion as tax revenue and K55.8 billion as non-tax revenue despite the fact that the Malawi Revenue Authority (MRA) managed to collect only K1.006 trillion as non-tax revenue.
“In a year when the business environment has become more hostile partly manifested by lower than anticipated reported profits of major and some listed tax payers, coupled with effect of civil disobedience, it is unrealistic to assume a rosy picture,” says Kaferapanjira.
The MCCI then tells government to use resources at its disposal efficiently and effectively.
Kaferapanjira says the government needs to be seen to be fighting leakages of financial resources and not be at the centre of financial scandals.
He says this erodes the confidence of every economic player as they know they have to pay for the leakages through increased future taxes and non-tax payments.Follow and Subscribe Nyasa TV :