Business people in the country have commended the Malawi Revenue Authority (MRA) for holding workshops with them on Duty Free Week and Advance Income Tax (AIT) adding that the information gathered will enable themmake informed decisions on the two programmes.
Taxpayers made the comments in Blantyre, Lilongwe and Mzuzu and other border places where MRA held external and internal sensitization workshopsto educate the masses on Duty Free Week and Advance Income Tax in preparation for implementation early next year.
MRA was represented at the workshops by paul Chisuse, Customs& Excise Division, James Mtemwende, Domestic Taxes Division and Thokozani Chiwaya, Napo Simkonda and Mc Hizzal Kawanga, Corporate Affairs Division.
Chisuse taking participants through the Duty-Free Week presentation in Blantyre
During the workshops, MRA emphasized that only people with valid TPIN will be allowed to import goods whether for sale or home use duty free whose Duty for Value Purposes (VDP) is USD3, 000 but will only be required to pay K15, 000 processing fees.
MRA also clarified that VDP includes the cost of the goods and other charges like transport, insurance, packaging and port charges all of which should total USD3, 000.
Among other things, the Authority said that one would be allowed to import goods into the country once during the designated week and goods arriving before or after the week will not be entertained.
Furthermore, MRA said that Advance Income Tax will be charged at the rate of 3% on VDP but the tax will only apply to those who have not registered for tax. For those registered for tax all what they need to do is to present a valid Tax Clearance Certificate (TCC) or Withholding Tax Exemption Certificate (WHTEC) to exempted them from the tax which is also claimable at the end of the year.
Speaking at the end of the two-week interface sensitization exercise in Mzuzu, Kawanga thanked all business people in the country for coming to the workshops in large numbers.
He said that MRA decided to hold the workshops with a view to drill taxpayers on the processes and procedures relating to the two programmes and also seek guidance on how the Authority should smoothly implement the Duty-Free Week and Advance Income Tax.
Kawanga assured the masses that MRA will continue providing information on the two programmes using the media and those needing further clarification can reach MRA through toll free line 672.
Finally, he assured business people in the country that MRA will continue exploring more ways to ensure that all businesses in the country are registered for tax just like what the two programmes seek to achieve.