Tax evasion riles Malawi President Mutharika
Acts of continued tax evasion promoted by dishonest entrepreneurs have angered President Peter Mutharika who has challenged that Malawi can be financially independent of donors if every tax is rightly collected.
Over K50 billion in tax revenue is currently stuck in court cases as many of the businesses involved in the practice of tax evasion have sought relief from the judiciary through stay orders and injunctions.
Mutharika told MBC’s Mgeme Kalilani in the latest edition of Talk to the President that tax evasion is an evil that is fast-killing Malawi financially.
“We have to be patriotic because we rely on tax to build roads, schools, hospitals, pay salaries for the public sector, the Police, the Army, teachers, doctors and nurses. But still some people are selfish enough to think for themselves only by evading tax. These are the same people who are in the forefront crying out that there are no drugs in hospitals and that we have bad infrastructure,” said Mutharika.
He said Malawians should learn to pay taxes voluntarily and warned his government will do everything to root out tax evasion.
Mutharika then urged the business sector to embark on import substitution ventures to prevent unnecessary loss of forex through imports such as toothpicks, fruits, cotton buds, and bottled water.
Meanwhile, buyers across Malawi have been urged to request and verify fiscal receipts from Valued Added Tax (VAT) registered businesses for every purchase they make.
Fiscal Receipts are generated by Electronic Fiscal Devices (EFDs) to address under-declarations and tax evasion when it comes to VAT revenue collection.
Malawi Revenue Authority Enforcement Manager Bentry Khonje said, by simply asking for Fiscal Receipts when making each and every acquisition from VAT registered businesses, consumers will be exercising their rights and also be playing a huge role in enforcing tax compliance.
He said members of the public should not be cheated by traders that transactions without Fiscal Receipts reduce commodity costs.
“As consumers we must also learn to check if what is on the Fiscal Receipt is indeed what has been bought. This is because other VAT registered businesses do print out the Fiscal Receipt but with cheaper products in order pay less or no VAT. Let us be patriotic and encourage tax compliance by demanding Fiscal Receipts, always,” said Khonje.
According to law, every VAT registered business is supposed to visibly display its VAT Registration Certificate and it is expected of them to issue Fiscal Receipts for purchases made by consumers.
Khonje said MRA must promptly be alerted if VAT registered businesses are not issuing Fiscal Receipts.
He said tax malpractices can be reported to toll free number 847 for Airtel and TNM subscribers or 80000847 for MTL subscribers. Informants can also send their tips to the Centre through email address:[email protected] or fax to 0182 229.
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Infact once your at MRA your considered rich coz there is too much corruption by employees who clear one out 3 containers.2 free and one container money is paid to them directly to share.in the end the indians will sale cheaper goods compared to a loval who jas less and paid more tax affecting businesses development. Nanji a FAST TRACK.THEY ACTUALLY STOP A BUS OR TRUCK AND WILL SHARE ALL MONEY RECEIVED.AMACHITA KUTI INU NDE MUPELEKA YOTI TINGOGAWANA MA 100 000 BASI OTHERWISE WILL VEASE KATUNDU AND WILL VHSRGE YOU DOUBLE. YOU JAVE NO CHOICE BUT TO LISTEN BASI
The MRA WORKERS themselves start corruption. They will charge you more than necessary if you dont adhere to ehat they want.at the end you have no vhoice bit to hive them half and they give government half of what they receive. Infact if your honest they actually say “aona azikhaula ameneyu”indians will clear one container out of 3 and give wa MRA ndrama ya one container and they share yet small business suffer as a result malawian local business die early
Uyambe iweyo paying tax with your army of advisors and ministers. Also pay tax when you buy anything outside the country. There and the then will Malawi develop. How do you expect Malawi to develop when you are being paid millions from the taxes being deducted from the little salaries people who get in form of peanuts? Allowances, fuel, house rent momwemo without tax. Ife si makasu okulimira ayi. Teachers work very hard to produce presidents, ministers but ten years on they hardly reach K100,000 per month yet they underwent training. President, ministers have no training but once they get… Read more »
WOOOOOOOH WE DO PAY TAXES BT U ENJOY THEM AL WIT UR FAMILY EN FRIENDS
There is indeed tax evation particularly by politicians. For example the City Assemblies are not supposed to be without finances considering the numerous buildings in our towns and how much city rates are chargeable payable quarterly. These cities can even feed District assemblies which do not have enough resources. The Cities should be divided into zones and monitor how rates are collected and which area is not paying and then who are the landlord. City officials collect the money and use the law to back you. The problem is that some people are above the law. We need a Magufuli… Read more »
I blame those who evade tax. The tax law is simply day light robbery of hard working Malawians. Just go to Mwanza and see how hapless cross border women are harrassed by MRA. I must confess I also use every tactic in the book(including under valuing imported cars). That is the only way to survive. I used to be a patriotic tax payer until my money was cashgated. Unfortunately these were peoplke who would boast and through expensive rounds at Afriucana. They were building mansions while I was struggling in a shack. They could tip waitresses with K20,000 without batting… Read more »
@ mkadamo, please read Malachi chapter 3 verses 8 to 10. Your excellency sir, you may be surprised that the people close to you are the ones in the forefront in tax evasion. The so called wellwishers of Asian origin and political leaders are using their connections with the ruling elite to evade tax! Accountabilty is also a problem, the general feeling is why pay taxes when the same will be used to castigate us through MBC tv by the ruling elite? The same taxes will be used by the ruling party to hold a “development” rally where all of… Read more »
MK577B will go a long way in boosting the National budget. MK298M will buy a lot of maize instead of 8 pages of a magazine article to “promote Malawi’s tourism
Yes I agree with you sir. One of the big moves that Malawi needs is to teach it’s citzens that everything costs money! Government is for us! if we dont put the money into government then Government can’t run! Donors should now bw a thing of the past! malawi can stand on its feet if only we learned how to manage our money, our time, our lives! its up to every single malawian to make this work! Bwana please puit in schools on the syllabus understanding government and self accountability and ,management, teach the children so we can chnage Malawi… Read more »
MR PRESIDENT, YOU WANT TAX MONEY FOR WHAT? WE’LL START PAYING TAX ONCE BOTH CASHGATE CASES COMES TO AN END.