Malawi cooking oil distributor rues smuggling of product from Mozambique

Balaka-based Cutrate Traders has supported the re-introduction of 16.5 percent value added tax (VAT on cooking oil but has urged authorities to curb smuggling of the product from Mozambique.

Treasury imposed VAT on refined cooking oil

Minister of Trade Sosten Gwengwe admits  that smuggling is a major threat to the local industry.

Smuggling is the illegal importation or exportation of goods subject to customs control.

Cutrate Traders acting general manager Austin Majawa, whose firm is a distributor of cooking oil in the Eastern Region, said since the introduction of VAT, cooking oil manufactures have raised prices of the product but about 30 percent resulting in them losing business.

He said this has compelled unscrupulous traders to buy cooking oil from Mozambique and smuggle it into the country through porous borders in the region.

“We used to buy a  200 litters drum  of cooking oil at K18 000,  but now the price has gone up to K200 000 and this is killing our  business as people are no longer buying from us,” said Majawa.

He added that the problem is not necessary the re-introduced VAT but the inability by government to curb smuggling of cooking oil in the country, saying they are now  stuck with drums of cooking oil as people prefer to buy cheap smuggled  from Mozambique where there is no VAT on cooking oil.

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Mdala
Mdala
7 months ago

I think we have a free trade zone soon, exactly from January 2021! Where is the problem!

Kudya katatu patsiku
Kudya katatu patsiku
7 months ago

Zanu zimenezo

nafundo zalo
nafundo zalo
7 months ago

Kkkkkkkk APM wapempha Standard Bank kuti acite UNFREEZE his account.
kodi ndiumbuli wanga???? si bank inacita freeze ma account a pitala kha getruda etc. I thot ACB ndiyomwe ikulongosola izizi??? a Bank sakuziziwa ai.
yankhani khaye milandu yomwe ikukukhudzani.
smuggle ya cement. Nanga ndata ya getruda apa pa bunda turnoff ija mumangila thope? khaye magetsi ngati uli ku NEW YORK CITY. mmmm Hammmayoooo. koma munatasha. inuyo inu. minda ya makolo athu imene ija munawalanda.

nafundo zalo
nafundo zalo
7 months ago

a gwengwe just do the right thing now. you were overspending for nothing.mwaikumbuka ya mipando ya ku office ija mukukozeka kuganiza kuti muwina????? THAT WAS A BIG SMUGGLE ON TAX PAYERS’ MONEY. PANO MUNAKAIIKA KUTIKO.????? munthu wakumudzi is just trying to survive.
ALL WE NEED IS ALL THEM FROM THE PAST TO CPME FORWARD ON LIVE CONFESSION AND APOLOGIZE.
THEY SCREWED MALAWI BIG TIME

nafundo zalo
nafundo zalo
7 months ago

kodi paja ndi kapito wa bureau of standads . ma stamp a exipry dates atatu on a food item. kuti kodi abale zacitidwaso reproduced . malawi anaooletsedwa kale ndi maboma apitawa. kwao kunali ”BOLA YANGA SIKUUKHA” OLO SIIKUDONTHA. LELO OMWE MUNALI MMABOMA ADZANA ZIKUKUKANIKANI KUVOMEREZA NDIPO MUKULEPHERA KUYAMBA MOYO WATSOPANO.’ TRUMP STYLE” MUMADYA NYAMA IFE OSAUKA KUMATIMWETSA MSUZI. munali anthu osokoneza malamulo ndi cikhalidwe. Boma lanyuwani musalidwe ai. Zitenga nthawi yaitali kusesa zinyalala za dzana ndi make dzana kuti kuyera kuoneke.. misonkho ya misonkho ya anthu ndi yomwe ndalama zake mmangotapa kugawana kumamangila ma Resort Nyumba rRest house Warehouses zomwe… Read more »

John chidongo
7 months ago

Mafuta tu anali Covo ndi Kazinga the best Malawi have ever had. Zimene akupanga pano ndi unsaturated fat. Not fit for human consumption. I don’t think Malawi Bural of Standard ali ndi zoyesera kuti aone mafuta ndi abwino kapena ayi . Believe me or not in 2 years time they will be more cancer yhan ever in Malawi. Polyunsaturated fats ndi oopsya kwambiri.

Ulemu K Namitembo
Ulemu K Namitembo
7 months ago

Is this the First Time Malawi has introduced VAT on Cooking Oil? Malawi used to have before also VAT on Cooking Oil, it is the Manufacturer who are Making More Profits and Not passing the Price to Details and Distributors If Ministrt of Trade ca. Check the Process Cost of the Cooking Oil and Obtain the Documents from MRA for Various Raw Materials Used in Cooking Oil Manufacturing Ministrt of Trade along with MRA can obtain the Details ànd will come to Know the Exact Cost and what Manufacturers are charging to Customers MRA is also giving the Industrial Rahate… Read more »

LDJ
LDJ
7 months ago

Lembani English yomveka apa. Apo ayi tangolembani Chichewa.

ZAWUHULE
7 months ago
  1. mesa ankati the VAT will not affect the price?
  2. komaso mafuta akumalawi amakhala ndi chiwisi, nabola aku mozambique
Mseteka
Mseteka
7 months ago

Wait until chakwera opens the floodgates on 1 January 2021 with the african continental free trade area, apo ndiye muzalira zenizeni. Will be getting cheap vegetable oils from Egypt 😂. Nanga inu mungapange compete ndi Egyptian company that has been doing it for 100 years?

Last edited 7 months ago by Mseteka
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