The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has warned that the private sector would stop remitting tax to the Malawi Revenue Authority if President Peter Mutharika’s administration shows no financial prudence.
MCCCI also expressed unhappiness with government’s unwillingness to deal cash cases which led to the withholding of 150 million dollars in direct budgetary support to Malawi by cooperating partners.
Democratic Progressive Party (DPP) government is alleged to have presided over mismanagement of over K92billion between 2004 and 2012.
MCCCI President Newton Kambala advised that tax payers’ money should be used accordingly by investing on worthwhile investments.
“We wouldn’t be happy to be contributing to the national budget when a lot of people are stealing and they are left without any controls so if this continues, we will definitely, as the business community, stop sending our money to MRA” warned Kambala.
He stressed that in the event of stopping paying tax to MRA, the private sector can always open a suspense account where taxes can be deposited.
“We would rather open a suspense account to be managed by the business community and the High Court or any administration within the Judiciary, whether it’s the new government or it was the same as long as there seem to be no action on the ground we will do it,” Kambala said.
Kambala further stated that if the current administration fails to action against alleged cash gate scandal culprits, their plans will be implemented.
There was no immediate comment on the matter, but President Mutharika indicated recently that his government will pursue all cash gate cases.