By Isaac Salima
Minibus Owners Association of Malawi (Moam) has vowed to defy the newly amended presumptive tax on commercial passenger motor vehicles.
Government has amended section 91 of the Taxation Act to change the application of presumptive tax on commercial passenger motor vehicles where commercial passenger motor vehicle owners will be required to pay K5,000 per seat per quarter.
When presenting the budget statement in Parliament in February this year, Minister of Finance Simplex Chithyola Banda said previously minibus owners used to pay a flat rate of presumptive tax.
The development means that, for instance, owners for a 14-seater capacity minibus will be paying the presumptive tax of K70,000 every three months.
But this has not gone well with the minibus owners, who have pointed fingers at government officials for “being inconsiderate”.
They made their point known during a meeting that Malawi Revenue Authority (MRA) organised in Blantyre to sensitise people to tax applications.
The meeting also involved cross-border traders who have been accusing government of imposing heavy taxes when they are importing goods.
“They are saying that we should be paying K5,000 per seat every quarter. It means that we will be paying K70,000 every three months.
“They are also charging a driver and a conductor, meaning that we will be paying K80,000. Previously, we used to pay K3,750 quarterly and per year it was K15,000,” Moam General Secretary Coxley Kamange said.
Kamange added that the minibus owners have agreed to meet government officials for them to rescind the decision.
And representing the cross-border traders, Benson Munthali said they are not happy that relevant officials have not been responding to their concerns on the taxes.
MRA Head of Corporate Affairs Steve Kapoloma said the presumptive tax is aimed at levelling the playing field.
“Previously, they used to pay a flat figure, but now the amended tax will enable them to pay according to their carrying capacity.
“The problem is that they are not understanding the whole issue. When they do, they will realise that the government wants to promote their businesses as well,” Kapoloma said.
