Malawi’s internet tax slammed: ‘Retrogressing, anti-democratic’
Opposition Malawi Congress Party (MCP) Member of Parliament for Dedza East, Juliana Lunguzi, has demanded a halt to a proposed tax on internet use, saying. this move will make Malawians unable to access internet services and therefore be denied their right to information.
Finance, Economic Planning and Development Minister Goodall Gondwe announced that starting this year, government will levy 10 percent excise duty on mobile phone text messaging as well as all data transfers including internet and similar services.
Gondwe made the announcement last Friday he presented a national budget for 2015-2016 financial years in Lilongwe at the National Assembly.
“The Internet is very important to a lot of people, especially the youth and students,” Lunguzi said.
But Lunguzi called the internet tax as “retrogressing” saying evening university students will be affected as most of today’s learning is done through electronic research.
She said “this is an e-generation” echoing activists who claim that the tax is “anti-democratic” that aims at restricting freedom of information.
Economist Alock Nyasulu has also protested against the tax on internet , saying it will also lead to “an increase in other related services such as bank charges since banks are a major
consumer of data services with real on time networks.”
Nyasulu said mobile money charges will also likely to go up, a development that will have a negative effect on efforts to increase financial inclusion since the service largely benefits the unbanked rural communities.
International trade expert Watipaso Mkandawire commented: “We should be encouraging bringing this technology to the majority and using it as an enabler. Mobile banking is seen as a way of serving the unbanked majority. And here we are taxing the very same enabler.”
Gondwe said the tax on internet has been put following the “tremendous uptake” of the telecommunication services in Malawi and in order to expand the tax base “to generate resources” for the national budget.
The Finance Minister told the House that there are several Taxation Act amendments which government is proposing.
He said the Taxation Act amendments will be presented to parliament through a bill.
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I commend the government in looking for ways to increase our tax base. However, economic prudence needs to be applied, a wholesale application of of some fiscal measures only serves to further marginalise the rural masses who unfortunately account for more than 80% of our nation. For example, Australia in its 2015-16 budget for the first time just introduced its on-line taxes but again only have applied it to goods purchased via internet to a certain capped value. This is what I call prudence, knowing what a country needs, using the resources wisely and then injecting it back into society. Wholesale application to include mobile phones etc for a small country that does not have a manufacturing-based economy is pure doom!
If I were Goodall, I would first introduce/invest in better systems of tracking, collecting and consolidation of tax, and equally key would be the disbursement on needs and priority basis and not lining pockets of the few or letting other entities go tax free!!!!!
The so-called undeserving DCs can as well be retired.I’m told someone was high-jumped from P7 to P3.Ironically, the highest paper she has, so I’m fed, is an MSCE! Our 28-district country cannot afford the luxurious excess DCs.Hon. Gowelo, work some miracle here.
inu a dpp mwapwala anu enafe tikupanga xul mukuona ngat research tizipanga bwanj nd internet yodula? kuzolowera facebook ya ulere? …ts nt abt political parties koma logic…alomwe odya anyan inu!!!!
MCP ndi a goodall Gondwe waulesi ndani? Inu ntchito attacking,up to now, sitinamvebe mfundo zanu, bola awa zawo tamva.mukatero mwati inu ndalama zoyendetsera boma mudzatenga kuti? Tax makes Government move! unless you give another way. koma zoti a Malawi akhale akapolo a azungu, chifukwa chopempha?mukhala ku Opposition konko mpaka mukalambe inu ,sure!
Kodi kani ku MCP wanzaru anali kamuzu yekha? nchifukwa chake I will love KAMUZU BANDA forever! and hate those who are ruining MCP now! and I know, they are the ones who are making kamuzu unpopular with their behaviors, kupanda nzeru, kulongolola mpaka nseru zinthu zopanda pake. Ngati kamuzu manged to run smoothly Malawi, by collecting Tax from everybody, without donor money. People were paying for their children education… and nthawi imene yija a Malawi ambiri akungolima. lero a Malawi atukuka akalephere kupereka 10% ku dziko lawo? ndichifukwa mukumapusitsa anthu sukulu za ulele, akalandilenso phala???????? kuchipatala ulele?? asapereke 10kwacha pa hundred kwacha zoona? mbuli yachabe, chabe! iyi
mbuli ya mzimayi. zoti ndi mtsogoleri wachinyamata,akudziwa yekha.MMutu mudamata.Choncho MCP mudzalowe Mmboma? ndakayika.mudzationongera dziko,no Mahala. simunanadziwebe Government is Bussiness? it gives back to the People what it collects from TAX? kani zinazi mumangoziyamba?mxii! mbola
Kupanga kuti ma phone azidulidwa % ku ma SMS ndi nzeru, mmalawi amene ali ndi phone Malawi muno wayenera kudula msonkho. asamangozolowera za ulere. Iwe Juliana, kapeze ndalama zaulere uzilandiritsatu.
Tamanenaninso za nzeru zoti Boma lichite ngati mukuti za anzanu nzaulesi!
most of them in the parliament, amamgoyenda ndi ma laptop osadziwa how technology work= ma secretary awo ndomwe amadziwa zocita, olo kutsegula email yao yomwe-nde za intrenet awa ndi anta
eish! At the time of buying a fon theres tax, buying credit tax and we shud also pay tax at the time of using
eeee guys this is killing us
Gondwe wakalamba, internet sakuidziwa komanso dzimaso dzidafa sangathe kupanga text ndiye wangoti afake tax
NO 7 THERE IS SOME IN WAT U SAY BUT U HAVE WASTED YUR TIME FOR NOTHING ALL U VE SPOKEN TRUSH AND POLITICAL FORGET ABOUT POLITICS BE4 YU CONTRIBUTE USELESS!!!
Introduce toll fees for our main roads as an alternative to internet tax.
No 7 you are such a fool. I’m very ashamed with you.
Phungu opanda chitukuko kwao uyu koma kulongolola basi ntauni. ufune ntchito ya mu ofesi
Malawi cannot afford to remain an Island. For us to develop and learn new things and connect with the outside world is through, we surely require internet. Charging Tax on internet looks a good idea because most people will participate as Most Malawians have phones.
But has the government consider this to be the best alternative for now. It would be a good idea that this was brought to the public for debate, Let Malawians speak. Internet is helping Malawians a lot and yet our internet connection still needs upgrading.
I believe that there are other ways Malawi can raise finances. The ordinary Malawian is already heavily taxed and its time that we think of new ways. Malawi has a wealth of creativity that we can tap from and come up with new ways. Malawians, lets think dip because the solutions for our country are within us as we work together. May God help us
The challenge that we have most of the times is that we look up to government for everything. So, our relationship is one sided, dependant on government. Have we ever thought of working as partners with Government. Government cannot provide all the answers. If we think always within the box and not outside the box, then we will continue to sing the same old songs. But its time for Malawians to arise. God has given us everything already, we are a prospering nation. However, our minds need to be liberated. If we are to progress as a nation, then we need a new way of thinking. Apart from government putting the skeletal structures, what are we doing to make our beautiful Malawi a better and attractive nation?
Nothing, always demanding.
Worldover, emphasis is on expanding the middle income band. If one thinks of this, lifting up the poor is way to go. Therefore, tax should be reduced on buses, boats and trains not on Prados and BMWs. Low income people buy vitz and corollas. But they pay double the price on import cars. Poor people buses, bicycles, boats and trains. And they use mobile money. If you want to tax internet find a graded formula. VP can help here. It’s his field.
remove all the subsidies and introduce reasonable heath fees for every one and the economy will be healed for once. these are bold decisions that must be made but now!
Seriously,those people arguing against the tax are making empty noise. Ms Lunguzi,do you understand these things or you just comment? There is great need for you to be making thorough consultations before commenting on issues you have little or no knowledge of. Anayse the proposal and provide constructive criticism. Government is proposing the introduction of the tax and its your duty,as an MP,to analyse it and make recommendations. Our economic experts be real as well. With the proposal,if I used to buy the airtel K24 bundle,I will be buying it at K26.40 and all I hear is people won’t be able to access internet. If its a K1,000 bundle,it will be K1,100. The money realized is to help in the purchase of drugs,paying government workers etc and we say it’s bad. If anything,advise government to put in place mechanisms that will ensure that the money is properly used,Ms Lunguzi and some “economic” experts.
pompano we’ve been ranked very expensive in communication services ndiye mukuonjezersnso? mwasiwa kuganiza kodi?
Aaaaaaaa kmaso ambali yotsutsa musamangotsutsu yayi give altenative solution!!!!!! Kuthandiana ndi boma!!!!! Tidakusankhan kumamidziku kma tikakukavani kuti mwayankhula chanzeru ndiye kuti mwatsutsa bac!!!!!!! Ukakhala otsutsa sindiye kuti chitukuko sipempha yayi!!!!!! Chitan zanzeru osamangodya ndalama bola zAnu zikuyenda bac!!!!!!!! Thanks kwa honourable mkhosa Ntchisi muli ndi fundo zanzEru continue although muli otsutsa!!!!!!!!!!
OK!!!!!!!!
I would like to conquer with you, becouse, it is abnormal to pay for the same thing twice. This is so, becouse, we have actually already paid for it, in the name of taxation. Lets be sober minded
I apostle chris, would like to tell Malawians of goodwill, that it is abnormal to pay for communication while we are already paying it in the name of taxes. This is so, becouse, we dont have to pay for the same thing twice.
Just remove subsidy on malata, he who wants to build a house has the money! These people r acting like they didn’t go to school, if you kill internet then all transaction are killed. Your degrees are just papers with no meaning, stupid people.
Old habits diehard. As the whole world is moving forward Malawi is retrogressing.
Paperless information is an in thing in this century yet other old, good for nothing party bafoons think their stone age info dissemination was the best and need to be forced all now.
Opposition will gain vote while DPP is digging own grave.
nde yake!bola tingo peza ka salary incliment if.in mzikangana
Mai Lunguzi, your people in Dedza in Dedza need to go to free hospitals, they are expecting free fertilizers. where do you think Govt will get the money for that. Everything is Malawi is important.
Whoever came up with this tax sukulu sinamuthandize. Malawi cannot develop with such myopic thinking.
Abale , a MCP musamangotsutsa, perekani inuyo nzeru yina. sindikuona vuto kuti Mmalawi almost aliyese achite Contribute ku Msonkho. Njira yabwino ndithu 10% isnot much! budget woyee!
Don’t rise up
Oh yes Malawi has reached at the extreme point that the goverment have run out of sources of acquring funds.Consumers still pays tax before when acquiring airtime,as such they will pay double coz they will also paying in using the airtime(bundles).Let the minister finds other means of raising the funds to support the budget.Did the Government exausts all internal & external ways of acquiring the funds for the natioanal budget.DPP what’s up? During Bingu u did well interms of economy & honourable minister you were the head. I hope this proposal will not materialise to law,then communication in Malawi will only be of the few.
Ada Gondwe mukukhumba kumawerenga mauthenga a pa internet nokha.
Sizodabwitsa, paja mkulu wakeanayika msonkho pa zifwiyo kikikiki
Ndipo anayikanso msonkho pa ziphwisi hahaha
Mtundu wa a Mutharika umenewo kikikkkk
Which sence does it make to reduce taxes on vehicles above 3000 cc? It should be the other way around!
Internet is the main protagonist for all kind of development all over the globe! We face already one of the highest cost concerning services in the IT sector worldwide…
Where do we go as a nation?
4rom the total population how many are benefiting on this service?
It is not a welcome move
Lunguzi is right and we hope that parliament will reject it. Government can raise enough money by ensuring that MRA works professionally and collect the many billions of Kwacha which people have evaded through corruption and inefficiency by the MRA officials . We are told by both the MRA and the ACB that they have discovered that a lot of revenue has been evaded through money laundering ,transfer pricing etc but they are not able to recover the tax. Its a pity because MRA should be able to collect not less than sixty billion every month. Now Government is going for easy money by imposing tax on internet services indeed of strengthening the tax authority. Why are we going backwards when our neighbors are going forward
Good idea made by lunguzi and i agree with you
Fire Mutharika’s useless “advisors” and save beaucoup cash instead of trying to balance the budget on internet use. And when you’re done getting rid of the advisors – colloquially known as hand-clapping specialists – cut in half the salaries and perks paid to cabinet ministers. If any of them cry mfwee mfwee mfwee, get them dismissed and send them back to their villages. Being in governemt is about service to the country not enrichment.
Well said Honourable Lunguzi,
The most important tool in today`s trading, education, security, agriculture you name it is information. Countries which have prioritised information technology (IT) especially by making the internet affordable and available are making strides in developing their nations. This is not about MCP or DPP ayi, its about Malawi. A farmer who can have access to texting or internet will know where and when to sell his goods to get maximum return; the student at our university or secondary schools where learning materials are in short supply relies on the internet for his research and learning materials in general as someone has already said about his children`s expenses on downloads; people these days when they are under attack from these nightly robbers communicate with neighbours or loved ones through texting or whatsapp( it has helped me more than once); the list is endless!
We know government is desperate to raise cash for the budget without donor support and they are targeting areas where there is the most activity and thats communication. In developed countries you either tax the big corporations and multinational companies or those sectors where you need to reduce production of restrict a practice. increasing the tax on alcohol for example will not make anyone suffer. With this tax on sms, as someone already said, government is shooting itself in the foot, giving with one hand and taking with the other. Government wants to encourage banking by villagers and locals, bank m`manja, mobile money, reducing lines in the bank by encouraging use of ATM cards which use internet. Most people who use cards are people with small accounts like the villager. Banks which offer services like checking balances on the phone, paying bills through mobiles, buying units ,transferring money etc will raise their charges and the bill goes to the poor. Meanwhile, K6bn stolen by your cronies is forgiven by government while the people who owe still drive around in their VXs, living in mansionsand flaunting their wealth? And by the way, the job of the MP to peak out is not restricted to the 10 minutes they are given during debate. Outside parliament, to newspapers and radios where they can speak in languages people will understand is even more important. So congrats Namulangeni!
Koma Lunguzi yu Nzeru zake za Munthu osakwatiwa basi worrying about texts basi why can’t you ask to reduce your alllowances you by the end of this parliament you will scoop over 4 million every one of you sikuba kumeneko Mai onani zotsutsa osati za zii ngati Izi
I totally agree with the MP on this point. Already high internet and phone tarrifs are basically going to make things a lot more expensive as pointed out. It’s kind of a desperate move to raise more money but the the thing is, when you start milking blood from a cow, instead of milk, it’s too late.
This cow called Malawi is not being fed. Bingu had it right: we must move towards being a predominantly exporting country.
No. 13 what constitutes beauty? Is it just the facial look or a combination of other factors like the body structure? Why don’t you reserve your comment till you see her in full? If you don’t know what beauty means, please ask Carva Bhima.
Internet prices are ridiculously expensive in Malawi.
Internet taxes raised is just another small boy peter and his thugs way to loot…the rich get richer while the poor get poorer.
Well done Lunguzi, not only are you a Malawian beauty but you are also an intelligent woman who cares for her people.
Zikomo
Hon. Linguzi, I agree with you BUT at this stage, as presented by the Minister of Finance it is just a proposal. I suggest you make other proposals that can be used to finance the National Budget. Otherwise dont mislead us as if the Budget has been passed into law. Your are now in clusters discussing the budget as proposed by Government. CHONDE work for all Malawian and not part of. There is partrotism in making positive or alternative suggestions to the budget.
mwachekula chifukwa chake mukuwona phindu yayi pazainternet.lekelani wana wadoko kuti ndiwo wagwirenge ntchito .watchout we will xenophobia you.
Iwe pitala watani kodi? Mai lunguzi akunena zoona. Uyu pitala wachekula sono I thnk so.
I wonder if those that are saying that internet is free in Malawi really live in Malawi. I have two children in the public universities and they rely a lot on the internet to download materials and books that are not available in the university libraries, whenever they want to make downloads I pay heavily to buy bundles for the internet, now if Government adds 10% to an already expensive internet how may students/parents will be able to afford internet facilities that are a necessity knowledge? Hon Lunguzi has a valid point here we are moving backwards and such a move will be costly
The cost of internet is 3 times higher than Tanzania, Kenya and Uganda. Government, through MACRA and PPPC are trying, through world bank, to bring down the cost of internet and the same government is raising the cost of internet through taxation. What a contradiction. It shows government as a “body” does not know what kind of ring it is wearing on its right hand and yet it is the same government that must have put the ring there.
Ndiye mukufuna tidzilira?
Mwana okongola uyu eti not yet married. Juliana chonde ndikufuna ndipo 2019 ndizavotela MCP chifukwa cha iwe.
Inu mai chepetsani speed musaiwale kuti chipani mulicho chilibe kuti uyu ndi good boy kapana good girl. Kumbukirani m’mene anafera abambo anu.
Yes, Malawians up take of internet services may be growing but whatare the current statisticts? if I may ask. I do not believe that we have reached the levels worth calling ‘high uptake’
A government led by old retired officers. Internetphobic team of very very old guards.
seriously this is so regressive. This same year reports came out that malawians are highly priced in terms of telephone services than any other country under the sun and now the so called honourables and professors are exited to impose hevy taxes on the already expensive services. This is very bad and uncalled for.
Honestly Mr Government is taking its people for granted. Plz mr Government dont be so harsh on your people.
What would you expect from the Government with a tight rope budget and with limited? This is where revenue can come from and unfortunately those that want free issues from the Government will have to pay somehow.
Inu a baba wa boyi or maybe “boyi wa APM” the whole point is taking money from the poor and subsidising the super rich I.e gvt deliberately not collecting money from muli, a very capable entity, to pay back money, instead declaring their dues as toxic assets, nde choncho amalawi tingaziimile patokha? With this kind of daylight robbery? Let’s inpower people with information not restrict them. Let’s support those MP’s who really want to put things right not selfish idiots like you. Boma likatenga ndalama ku anthu, ntchito yake izione osati kumupasa mulli.
You are an Idiot!!
So if we take all the money from Muli, that will be enough to finance the budget?
Which poor Text?
If Government misuses tax money, it has nothing to do with levying tax.
Agalu inu texting zachigololo basi. You are just used to free things. Who says this will lead death of freedom of information? Agalu kagwereni uko.
a gudoo nde information yathatu media mukuidziwa koma??????????????? zuoneka kuti mwasokonezeka. pano dziko layamba kumasukja ndi internet. mufuna tikhale za kale zija kuti tisamakhale ndi ma TV eti? kukweza tax zikomera inu. nanga paja mmalandila cithumba ca ma allowance a ma cellofone ndi ground foni. much of it with crap fone calls kukambilana zokuba ndi ku zibwezi bweeeeee
This is no time to take the country 20 years or so backwards when we had news blackout . When many countries are opening up through new communication technologies our Government has chosen to put impedements to the process. This is a mismatch which must be reconsidered for the best interest of the country.
Why is it that Malawians always want something for nothing.
For so many years, we have been fed by whites, now we are required to look after ourselves we complain when we are asked to pay for things ourselves?
This woman says she wants information, what about the duty that has been removed from TV and Radio equipment?
Besides, what is more important food or information? This country can’t even feed itself and we are arguing about 10% on Texting? if you spend MK 10,000 on texts (which is very irresponsible) tax will be MK1000 and you are complaining?
How do you expect Government to finance the endless demands you idiots make day in day out?
You say this Budget is pro rich, who are these rich? you are the rich. People that can text are the rich.
The poor in the village have no need for texts, the majority can not read, they can speak, but not read, so if you complain of the 10% tax you are saying the rich, YOU do not want to pay tax.
I for one is sick and tired subsidising the so called poor most of whom are lazy good for nothing and do not realise they live on our backs, the only way they can contribute is by paying indirect tax.
Stop trying to whip up a political frenzy because you believe MCP should be in power, the fact is you are not.
We have to realize it does not matter who was in power there has to be a budget that raises money through taxation. are you saying MCP would have had a budget with no tax in it?
Malawians are very sad people and very ungrateful I for one stopped feeling sorry for the so called Malawian poor long time ago, because of this attitude of assuming if they have not paid for it “Ndizaulele” and they do not respect it.
I guarantee you 60% of the use of information technology in Malawi is used on watching pornography,sending photos of nude pictures, reading on line papers, Nothing productive, If people argue they use it for business, then it makes sense to pay tax.
KOMA ABALE OLEMERA OGULA MAGALIMOTO REDUCED TAX; OSAUKA AKAMAYIMBA PHONE TAX,KUKONDERA A CHUMA’ KUYIPIRA OVUTIKA; MODERN SLAVERY????????????
Go ahead Julie, step on it and educate those fools they want to keep Malawi a closed society, we can not go back to the Stone Age. We need to keep up with the rest of the world. Julie, it must be painful to sit and listen to these embesiles in parliament………….. I feel your pain. Thank God we have a brilliant opposition we are depending on you guys!!!
This dpp govt wants to stifle opposition and activists freedom of expression against dpp thieving, poor governance and corruption criticisms.
This should be resisted in the strongest possible way.
may whosoever has the phone number for this MP plz share with me….
Kodi iwe Lunguzi, mesa ndiwe MP, Bwanji zimenezo mukanenere mParliament, mesa mupanga debate, so naga ukungoti bwa bwa bwa, ife tiziwe zoti umatha kususa?? is bwa bwa bwa pa media the right forum to debate on budget?? kodi akat ndinu osusa nde chilichonse bwa bwa bwa before debate?? usamale uluza nazo political strength zimenezo.If u have nzeru uli ku parliament, kanene zimenezo mParliament.If u are saying boma ndi laulesi popeza njira zopezera ndalama, osalilangiza bomalo njira zna zopezera ndalama bwa?? akaikaso additional nsonkho ku mafuta , uzibwebwetukaso, so ufuna chani kwenikweni. azungu anakwiya nde mumati Muntharika atenge ndalama zake aziyendesera nazo boma?? guys a Opposition inu, tithandizen. munamumva Chirf Ngolongoliwa mmene ananenera?? zachamba zanuzo mukutikwana nazo. Im an MCP supporter koma asogoleri anganu ndikudabwa nanu, mukundibowa hvy. U have missed ur role.
The best way is to share this nation south go-north go -centre go then we should see who is the best produce among the three- IVI VYAWAKAWAKA ————–mBAVA BUSY LOOKING HOLES UWO NDI UTENSI