By Mercy Matonga:
The Malawi Revenue Authority (MRA) and the Treasury have expressed ignorance on the implementation of the Value-Added Tax (VAT) on motor vehicle imports for privileged individuals, including Cabinet ministers and organisations.
During the mid-year budget review, Finance Minister Simplex Chithyola Banda announced the removal of the Value Added Tax (VAT) waiver on motor vehicle imports for privileged individuals.
But almost two months since implementation started, both MRA and Treasury do not have information on the implementation of the austerity measure.
Secretary to the Treasury Betchani Tchereni referred us to MRA for details regarding progress of the exercise when asked on Wednesday.
“The questions raised are more operational than policy[-related]; kindly direct them to MRA,” Tchereni said.
On her part, MRA spokesperson Wilma Chalulu said the Ministry of Finance was better placed to respond to us on the issue.
“Maybe this is for the ministry,” Chalulu said.
Ministry of Finance spokesperson Williams Banda asked for ample time before he could respond to the issue.
Commenting on the matter, Centre for Social Accountability and Transparency Executive Director Willy Kambwandira said it was clear that this was some form of public perception management.
“The government just wanted to be seen to be doing something on austerity measures. The truth is that there is nothing to read about, and we don’t even think this order has been effected and, if effected, then it has made no difference because we have not seen much, in terms of impact and difference the measure has made,” Kambwandira said.
Individuals who were to be affected by this measure include the State President, Vice President, retired presidents and vice presidents, Cabinet ministers, members of Parliament, senior officials in the Judiciary including judges and justices, senior government officials and senior military officials.
The minister also announced the full implementation of Electronic Excise Tax Stamps.
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