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MCCCI Pushes for Tax Review

MCCCI Pushes for Tax Review

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has called on government to revise corporate taxes, stating that high taxation on local and imported goods is negatively affecting the growth of industries.

Speaking during the official opening of the 2024 Malawi International Trade Fair, which took place from May 23 to May 29 at the Chichiri Trade Fair grounds in Blantyre under the theme “Boosting Malawi’s Export through Enhanced Production,” MCCCI president Wisely Phiri said that government policies and laws, including high taxes, are deterring foreign investors from coming to Malawi, thereby negatively affecting industrialization.

“Malawi has become an expensive destination for foreign investments due to government’s unfavourable policies and laws. We need new foreign companies to come to invest in Malawi,” he said.

Phiri lamented that the additional 10 percent tax on corporate companies with profits of 10 billion Kwacha is crippling the growth of industries and their day-to-day operations.

“The government has added an extra 10 percent tax on corporate companies with profits of 10 billion Kwacha. We want government to look into that,” explained Phiri.

However, Phiri commended government for making commendable strides through initiatives such as agriculture commercialization and the construction of a one-stop border centre, saying that when fully implemented and utilized, these initiatives will help enhance the country’s export capacity.

In his remarks, the Malawi leader President Lazarus Chakwera implored MCCCI to liaise with and engage the government through dialogue on issues affecting the private sector. President Chakwera stated that government is currently putting in place new policies that will help both big and small businesses thrive and address challenges they are currently facing.

He added that business operators should utilize regional trade agreements such as the Common Market for East and Southern Africa (COMESA), the Southern Africa Development Community (SADC), and other trade agreements to showcase their merchandise and learn from their colleagues.

“The government is ready to support the business sector but let me urge the private sector to also utilize the opportunity of regional trade agreements to boost their businesses,” said Chakwera.

Commenting on Chakwera’s speech, Minister of Trade and Industry Sosten Gwengwe said the government is making meaningful progress in exports and industrialization.

“Malawi is now at number three in Africa and position seven globally on macadamia nut exports. Malawi has also stopped importing vegetables, eggs, and dressed chickens. This demonstrates that, as a country, we are really moving forward,” he explained.

During the international business event that drew 180 local companies and four foreign participants, MCCCI gave awards to outstanding companies in different categories.

Thyolo Nuts Limited was awarded the best exporter; Easy Park was chosen as the emerging exporter; Sun Bird Limited was awarded the best service provider; Mzuzu Coffee is this year’s best cooperative; and Dedza Limited is the best youth exporter.