MRA collect K600m from carbon tax, exempt Malawi government vehicles from levy

The Malawi Revenue Authority (MRA) has collected about MK600 million from both foreign and locally registered motor vehicles since its implementation of the carbon tax on November 25, 2019 but Parliamentary Committee on Natural Resources and Climate Change  has said there should be a review in the decision to exempt government vehicles from the  levy, saying revenue is being lost in the process.

Carbon tax imposed

MRA director of planning and research Waziona Ligomeka said the revenue collecting body has so far collected K600 million and expects K1.7 billion by June this year.

According to MRA, the carbon tax which is paid once a year, is charged depending on cylinder capacity (CC) of the motor vehicle which ranges from MK4, 000 for smaller vehicles to MK15,500 for vehicles with more than 3000CC.

Parliamentary Committee on Natural Resources and Climate Change chairperson Welani Chilenga expressed sadness over government decision to exempt state vehicles from carbon tax.

Said Chilenga: 2We have started well, but our concern is on the criteria used to exempt government cars. We would have collected more if everyone was included, government vehicles, as well as factories and other users.”

Chilenga argued that the exemption on carbon levy was not good saying revenue is being lost in the process.

But Principal Secretary to the Treasury Cliff Chiunda told the committee that government will get clear feedback from MRA on the matter.

During presentation of the 2019/2020 budget statement in Parliament Minister of Finance, Economic Planning and Development Joseph Mwanamveka said government introduced a carbon tax on local and foreign registered motor vehicles as a source of domestic resources for climate change management.

Carbon tax is a tax on motor vehicles paid once a year, it is applicable to locally-registered vehicles as well as those with foregoing registration number plates. MRA started implementing carbon tax on locally-registered motor vehicles on November 25 2019.

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masoambeta
masoambeta
10 months ago

As long as the carbon tax law is concerned, no vehicles payable is exempt. This only show how stupid the Malawian legislators are. Are government vehicles exempt from road tax, COF and insurance?? Zakumatako kwa pitala izi. Law yake kodi anapangila kuti pumbwa ameneyi? DPP yatiyabwa kokwana.

4444 Nooo
4444 Nooo
10 months ago

Mzosekelera zimenezi?azungu akutigulisa timagalimoto takutha inu mmalawi anakulakwulani chani

chimanga
10 months ago

Zapezeka ndalama zoti DPP igwilitse ntchito pa Appeal ya election case.

Mangochi Kabwafu
Mangochi Kabwafu
10 months ago

Why exempting government vehicles? Don’t they emit co2? Never heard of such a stupid policy in my life. Only in Malawi.

wa Nyau
wa Nyau
10 months ago

mmm koma mdziko muno anthu ali ndi ndalama

tuntufye
tuntufye
10 months ago

I hope there will be transparency on how this money is utilized. it is becoming tiring being milked and not knowing how our milk is being used.

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