Reported By Austin Kananji
Minister of Finance and Economic Affairs, Simplex Chithyola Banda, has announced removal of Value Added Tax (VAT) waiver on motor vehicle imports for privileged individuals as a revenue enhanced measure.
He made the announcement in Parliament on Wednesday during presentation of the midyear review budget statement.
He clarified that the affected individuals with this measure include the State President, the Vice President, retired Presidents and Vice Presidents, Cabinet Ministers, Members of Parliament, senior officials in the Judiciary including judges, senior government officials and senior military officials.
“Once this VAT bill has been passed, these privileged individuals will now pay VAT when purchasing duty-free motor vehicles,” he said.
He further stressed on the collective will from other members of Parliament and the nation at large saying it is a sacrificial initiative that affects people in the high income bracket to be implemented and manifested.
“I wish to mention that there is need for collective will for us to make our economy recover. As such, the President has guided that we all make our fair contribution towards revenue that government needs at the moment.
“As such, it should be noted that this measure affects people in the high income bracket, such that the removal of the VAT waiver is a sacrifice and a clear testimony to the commitment to fiscal consolidation for the betterment of all Malawians,” he said.
