Pay taxes, Mutharika appeals: ‘Donors not ready to resume aid’

Malawi President Peter Mutharika has appealed to citizens and corporate organisation not to evade tax, saying the government needs to collect enough revenue to run the affairs of the country after it adopted the zero aid budget.

President Mutharika:  We are on our own

President Mutharika: We are on our own

He said Malawians should  understand the obligations of being a good citizen and pay tax to run the state operations.

“Let us all pay taxes to have some money to run the country. We are now on our own there is no one who is going to give us money” said Mutharika.

He admitted for the first time that Western donor nations and agencies, who bankroll up to 40 percent of the national budget, are not ready to bail out Malawi any time soon.

“We’re on our own; nobody is giving us any money,” President Mutharika said at a rally he addressed in the eastern town of Balaka. “We just have to work hard and pay tax.”

Donors are withholding 40% of budgetary support following allegations of corruption and systematic looting of state resources by senior civil servants and politicians.

The budget has been called “zero-aid”, and it has a 107billion kwacha (£167m) deficit. So far, the government has not explained how it will cover the deficit.

Critics predict that the government may eventually have to raise taxes, increase fees for government services, and resort to local borrowing to plug the deficit.

It is not the first time Malawi has had to do without some budget support. During the 2011-12 fiscal year, under President Bingu wa Mutharika (the current president’s older brother) donors withdrew budgetary support because of poor governance and the then president’s increasing autocracy. He resorted to a “zero-deficit” budget in defiance of the donor community, implying Malawi could do well enough on its own.

The zero-deficit budget led to fuel shortages, erratic power supplies and the scarcity of commodities such as sugar. This was largely caused by lack of foreign exchange to import goods and raw materials.

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Big Kahuna
Guest

This idiot has to get rid of the so called advisors because its a waste of money.Government departments have way too many cats that are missused,you dont need a driver to travel from Blantyre to lilongwe,get on a coach

Baba
Guest

95% ya abthu ogwira mboma ndi ma cashgate.Tafufuzani anyamata ndi atsijana aku MRA kowombola katundu, office yopanga ma drivers licence, apolisi just to mention a few. Malawi is in a total mess. Pple. #SAY NO TO CASHGATE.# HELP MALAWI TO DEVELOP.

Malawi
Guest

107bn is 40% deficit and one individual looting 92bn. Then others loot 20 bn. From 2005 to 2013/14= 112bn ???? more looted. What is this?
Zinthu zavuta. Mavuto awa ndi atonse but at the same time someone is having the guts to claim 3billion. Kumangokawa dziko. Ndalama zina zili padela for compesation. At the same time we want the donors to help. Zoona zimenezi?

Hagar the Horrible
Guest

Abale anzanga, nkhani ili apa ndiyokuti takula tatha, tingovomera kuti tili patokha ndipo tivale zirimbe. Azunguwa ndalama zawo auma nazo mtima. Let’s all be patriotic and work very hard for our own survival. This means casting away selfishness. Kuba kwamtundu ulionse, cashgate or cronyism, kumangodzipaka kwa anthu a ndale kuti tidzidya nawo ndalama za boma, zitheretu. Let’s change our mindset completely about ndalama za boma, nkumati ndi zopanda mwini. It will not take us anywhere.

matako
Guest

Its interesting that APM is urging us to pay taxes. Nobody has enough balls to tell this corrupt leader that he should bring back what his brother store and is in foreign accounts. I am sure that loot alone can make a diffrence in supporting part of the budget. So Mr president charity begins at home. Lets recover stolen loot starting with you and the houses you bought at below market value. That is how you should approach this issue.

Alungwana
Guest

Then dont be careless with our taxes because we taxpayers shall even demand an audit report from our money. Zathuzisakhale zophweka kuba.

POLITICAL THIEVES
Guest

@Thoko at 70. How will poor old APM tackle this? Will he tackle himself? Have you ever heard of munthu kidzigiligisha yekha? Tickling oneself? It’s never possible. It’s a shame coz we have sleeping dogs in the name of MCP who should be doing the tickling, but where are they? Nobody knows.

Zamadula
Guest
I must say I am greatly disappointed in MCP. This is the time for them to show leadership on this issue – DPP is using cashgate as a way of killing PP. However, everyone knows that It is not just PP who plundered public coffers – DPP was heavily involved from 2005 to 2012 as well. The evidence is in the obscene wealth DPP and individuals close to the party amassed in this period. MCP should put pressure on APM to have this period forensically audited as well. This is the main reason donors are still withholding aid – they… Read more »
Malindima
Guest
Let’s just get used to our resources without Donors. It is time to be innovative. Nothing wrong with aggressive tax collections. There are many people who are evading tax these need to be targeted. Cut spending. All working class and informal business people MUST pay for medication at public hospitals. Erect tolls on national roads and collect as much revenue as possible.Traffic Offenders MUST pay! All cash gate assests MUST be confiscated and sold on public Auctions to recoup the looses. Encourage hardworking people to export their produce for more profit and more tax. Come on guys, anything is just… Read more »
Minofu Jekete
Guest
Where is the list of Cashgate names in the cashgate report? The minister of Finance stated that you would release the names in August 2014 but to-date no names. Once you release these names and punish those people then people will pay taxes and have confidence in you and the Government. Some of the cashgate peo[ple you are eating with them and protecting them. By the way where is the cashgate report you said you are reading? Did you find your name in it? or the name of Gondwe? What then? By the way which people are you talking about?… Read more »
Thoko
Guest

MK92 billion will solve all this mess. APM you need to tackle that first

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