Malawi News

Renewable energy players to clarify on tax exempted products

Renewable energy players to clarify on tax exempted products

The Renewable Energy Industries Association of Malawi (REIAMA) is set to embark on a campaign to clarify which renewable energy products are officially tax-exempt and zero-rated by the Malawi Revenue Authority.

These products will be listed separately from the main tariff book for easy reference by importers and clearing agents in the renewable energy sector.

Mhone: People must be aware.

The remarks were made during a briefing by REIAMA to its members highlighting tax-exempt and zero-rated renewable energy products, along with their Harmonized Standard Codes (HS Codes), compiled into a single manual/booklet in collaboration with the Malawi Revenue Authority (MRA).

Brave Mhone President of REIAMA pointed out that there was a gap because technologies were advancing faster than the MRA and the Ministry of Finance were updating the tariff book, thereby creating an unfavorable business environment.

“The decision was made that we need to streamline the whole process and we need to come up with a clear understanding as to which products are exempted so that the MRA officers at the entry point should know, including the clearing agents,” said Mhone.

Solar panel – one of the items that have been exempted from tax.

He praised the Malawi Revenue Authority for its commitment to supporting the dissemination of information to importers.

Additionally, Mhone urged traders to report to the association if they face challenges in importing the exempted renewable energy products.

According to the association this booklet will be used by customs officials, clearing agents, and importers to ensure that these products are easily cleared at entry points.

Some of the items that have been exempted from tax include gas cylinders, biogas equipment, wind pumps, solar pumps, solar battery chargers, solar bulbs, solar panels, energy saver bulbs, and electric vehicles, among others.

This initiative is part of the Global Off-Grid Lighting Association’s (GOGLA) project, which is being implemented by REIAMA in Malawi.