President Peter Mutharika is on record describing ruling Democratic Progressive Party (DPP) lawmaker Noel Masangwi as a “smuggler” in a leaked gossip talk. The DPP heavyweight who has been making headlines for tax evasion is in the news again for wrong reasons, allegedly for under declaration of goods worth K174 million at only K3 million.
Malawi Revenue Authority (MRA) says the MP for Blantyre City East has made government lose K16 million tax by declaring the goods at K3 million instead of K174 million.
According to MRA spokesperson Steve Kapoloma, Masangwi tried to cheat customs officers at Songwe border in Karonga through his Elvis Freight clearing agency.
“On 20th May 2015 Songwe received two containers containing Zitenje fabrics imported by Miladgi Tradings. The importer identified Elvis Freight as their clearing agent. Upon receipt of an application for transit to Blantyre by Elvis Freight, the officers conducted a comprehensive examination considering that the commodity is risky.
“Physical examination revealed that through the number of bales of fabric was the same declared, the actual number of metres of fabric was grossly under-declared. There were 650 bales as declared. However, 7,800 metres were declared while examination established 377 160 metres. Declared value was K2 940 600.00 while upon applying the values for zitenje, the total value came to K174 039 727.68″, said MRA spokesperson as quoted in the press on Sunday.
Kapoloma said the importer was expected to pay 16.5 percent import value added tax amounting to K16 million considering that the goods were coming from within the Southern African Development Corporation
He said Miladgi Tradings will also pay penalties for “under declaration”.
Masangwi has not commented on the allegation, attempts to reach him have proved futile.
The politician, who is a National Governing Council (NGC) member of DPP, was embroiled with another tax scandal when he was accused of using his political power to silence MRA officials and to
release his four containers that were seized because they carried the banned Mukula timber which had originated from Zambia.
Masangwi claimed he is not into timber business and accused people he did not name “for dragging him into the circus”Follow and Subscribe Nyasa TV :