Wednesday, December 8, 2010

MRA introduces discreet taxes

The Malawi Revenue Authority (MRA), Government's revenue collection arm, has discreetly introduced new charges, adding on to the 20 per cent government imposed on second hand vehicles to prevent the country from turning into a dumping ground.
The new charges are being implemented without Parliament's approval.
Whereas impoters used to contribute about 300,000 in taxes over a K1.8 million vehicle, they now have to pay an extra K80, 000 in unknown charges, raising shelf prices in the process.
One of the second-hand vehicle dealers, Yusuf Ulaya, said car dealers are being delt heavy blows everywhere they go, including in Mozambique and Zimbabwe.

Second-hand car dealing: Getting expensive for Malawian traders
In Mozambique, Malawian car importers are paying a refundable 1,000 in that country's currency. However, it takes over three months for Mozambican customs officials to repay the money. Traders say this is eating through their operations costs.
In Zimbabwe, however, the case is different. Second-hand vehicles are no longer using the country as a point of transit from South Africa, a development that has spiralled transport costs for Malawian traders.
"The situation is so bad and it is our prayer that President Bingu wa Mutharika, who serves as the African Union Chairperson, will intervene and serve us from economic collapse," said Ulaya.
He plies his trade in Blantyre City Business District.

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