Malawi Human Rights Defenders Coalition, representing concerned citizens of Malawi, raise our voices against the government’s new vehicle import duty, which has imposed unrealistic and punitive taxes on the citizens, hindering economic growth and impeding the rights of individuals to engage in economic activities.
It is imperative that HRDC makes its positions clear to ensure that there is tax justice in the country that can foster conducive environment for the economic welfare of Malawians.
We, at HRDC, believes that no country can develop without citizens being responsible for
paying taxes and we acknowledge the importance of taxation for national development
and support formulation of laws and implementation of measures for citizens to fulfil their
tax obligations.
However, paying taxes should not be penutive to the citizens or stifle the growth of
businesses. Taxes must be fair and reasonable, allowing citizens and enterprises to thrive
and contribute to the country’s economic progress. The imposition of punitive taxes
restricts the rights of citizens to engage in economic activities and inhibits the growth of
businesses.
Tax administration should be fair, reflecting the reality of the country’s economy and the
enjoyment of economic rights by the citizenry. Taxes should be designed in a manner that
considers the economic situation and the ability of individuals to pay, ensuring a just
distribution of the tax burden.
Malawians are already burdened with excessive taxation. Our citizens are among the most
heavily taxed individuals in the world. The introduction of additional unrealistic taxes on
vehicle importation exacerbates the financial strain on the populace, leading to further
economic hardships.
HRDC believes that taxes, when used effectively, can be instrumental in uplifting the
impoverished. Rather than imposing punitive taxes, we advocate for realistic taxes that
create an environment conducive to improving the welfare of citizens and facilitating their
transition out of abject poverty.
The outcry against the taxed levied on imported vehicles is justifiable. The government
must reevaluate the formula used to determine these taxes, as it fails to reflect the actual
market value of imported vehicles. Under the new calculation regime, the taxes imposed
far exceed the cost of the car itself.
The current tax regime is inhibiting citizens from importing and owning vehicles, due to
the prohibitive tax structure. This severely limits mobility and economic opportunities for
ordinary Malawians, hindering their ability to engage in productive activities.
OUR CALL:
The government’s decision on this new tax regime lacks comprehensive consultation.
• We urge the government to engage a wide range of stakeholders to gather
diverse perspectives before implementing such policies that significantly
impact the citizens negatively on their economic welfare.
• The concerning aspect of this law is that it was passed through Parliament
without proper consideration of its actual impact on ordinary citizens.
Members of Parliament, who are exempt from paying taxes on their vehicles,
do not experience the burden of these punitive taxes, which highlights the
inequality within the system. Therefore, HRDC advocates for the abolition of
duty-free privileges for public officers and Members of Parliament.
• If the government claims that it is implementing these measures to save
forex, it should also take comprehensive actions to combat the real culprits
who externalise forex. Additionally, the government should implement
austerity measures on the travel expenses of public officers, including
external presidential travel, in order to save forex. Furthermore, the
government should consider banning the use and purchase of expensive
vehicles by public officers that unnecessarily drain forex.
• Government should not use unjust taxes to punish Malawians. We demand
accountability and transparency in the utilization of tax revenue. Before
increasing taxes, time to time, government should be able to provide a
detailed account on how the collected funds have been utilised over the
years.
• The timing of the tax increase, during a period of economic hardship for the
masses, displays the insensitivity of the government towards the suffering of
ordinary Malawians. We call upon the government to reconsider this
decision and prioritize the well-being and economic stability of our citizens.
• We, as the Human Rights Defenders Coalition (HRDC), give the government
a 7-day ultimatum to engage with different stakeholders and address this
issue. If the government fails to do so, after the said 7 days, HRDC will tell
Malawians the next course of action.
In conclusion, we emphasize the need for tax justice, fair taxation, and transparency in
the administration of taxes. We believe that only through these measures we can create
an environment that promotes the well-being and economic growth of all Malawians. It is
time for the government to listen to the people and take necessary steps to rectify this
unjust tax regime.
Gift Trapence |
National Chairperson
