One of Malawi’s leading Transport Company Siku Transport has been relieved following the return of its vehicles that were impounded by public tax collector Malawi Revenue Authority (MRA).
MRA seized about 97 vehicles from Siku over Millions of unpaid tax which was valued at K856 million (about US$2.1 million).
It is reported that the court has ordered the release of the vehicles as Siku lawyers have also applied to court to interpret some of the provisions in the VAT Act.
An earlier court application by Siku stopping MRA from impounding the vehicles was snubbed by the High Court’s Commercial Division in Blantyre recently.
One of the lawyers representing Siku, Kingsley Mapemba told The Nation on Thursday that the MRA charges are not relevant to what Siku and other transporters are charging as transportation charges.
“MRA is charging the standard rate of 16.5 percent on the same whilst all international transporters in Malawi including Siku are charging such services at zero as prescribed by the VAT Act” Mapemba is quoted saying.
“The assessment in dispute herein is premised on the same and not that Siku evaded any tax or failed to remit any as the media has recently reported. MRA is charging Siku for failure to charge and collect VAT on such services from its clients who import goods into Malawi,” he added.
According to Mapemba, the matter is yet to be set down for hearing of the application.
Meanwhile, Siku has described MRA’s conduct as unethical and unprofessional.