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‘Escom, Admarc default on paye’

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Chairperson of the Budget and Finance Committee of Parliament, Rhino Chiphiko, has alleged that some parastatals, including the Electricity Supply Corporation of Malawi (Escom), the grain marketer, Agricultural Development and Marketing Corporation (Admarc), and the Malawi Posts Corporation (MPC), have not been remitting Pay As You Earn (Paye) tax to the Malawi Revenue Authority (MRA) for over three years now.

Chiphiko said this in Parliament Monday when he responded to the mid-year budget review statement that Minister of Finance, Goodall Gondwe, presented to the House on Friday.

He said that this is happening despite workers in such institutions getting Paye deducted from their salaries. It is not strange, he said, that MRA has for a long time been failing to meet its target with such a background.

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“Whilst we understand that they are not paying corporate taxes because they are not posting profits, non-payment of Paye is unacceptable and is illegal, Honourable Minister,” Chiphiko said.

He further said that the underperformance of dividends by parastatals, which stand at K7.4 billion, can also be attributed to a slowdown in economic activity coupled with mismanagement.

But MRA Director of Corporate Affairs, Steve Kapoloma, was non-committal on the matter.

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“It is confidential information that we cannot release and the best you can do is to talk to the parastatals in question. We are under obligation not to release any information about any company as per our own policies,” Kapoloma said.

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