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Smuggling costs economy heavily

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A report by the Parliamentary Committee on Industry, Trade and Tourism says government policies on tax and overpricing of goods by some producers are among enablers for smuggling.

The committee observed that no member of the Malawian business community found the tax policies approved by Parliament to be reasonable.

It says most respondents indicated that the tax seems exorbitant and prohibits growth.

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Findings by the committee suggests that most consumers, especially in the border districts of the country, feel prices of most local commodities are higher than those from neighboring countries.

The report has since recommended crafting of policies which would promote private sector growth.

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Chief Executive Officer Chancellor Kaferapanjira said pricing borders on the cost of production.

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“When they smuggle, they do not pay any applicable tax; therefore, the goods are much cheaper.

The people who are supposed to curb smuggling are also the culprits. We need to eradicate corruption if we are to see change,” he said.

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