KABANZA OPERATORS GRANTED TAX RELIEF

In recent times, the Government of Malawi through MRA has made bold steps in making the tax system more inclusive and responsive to the needs of the people. One notable example was the recent reduction of Withholding Tax for tobacco farmers from 3% to 1%, now treated as a final tax. The tax relief was granted to the small-scale tobacco farmers in recognition of their contribution to the country’s economy development through self-employment and wealth creation. For many smallholder tobacco farmers, this was more than a tax change. It was a worthwhile incentive.

A similar moratorium was offered to Kabanza operators to clear their motorcycles at reduced Customs rates from 10^th March 2025 to 30^th June 2025, subject to extension. This followed the publication of the Customs and Excise (Public Transport Motorcycles) Regulations, 2025 on 17 February 2025, for public transport motorcycles used in commercial transport service for the transportation of people.

This facility enabled many Kabanza owners to clear their motorcycles. Mind you, the special clearance arrangement came with generous waivers as there was no processing fees attached nor requirement to hire a Customs Clearing Agent.

To ensure that the targeted audiences got as much information as possible, MRA mounted an intensive and extensive awareness campaign through the media and outreach programmes. The Authority used printed materials such as public notices, leaflets and brochures. MRA also used electronic items that were aired through various TV stations and radios that included national and community radio stations as well as the social media.

Furthermore, MRA conducted outreach meetings with Kabanza owners across the country. To increase coverage, there were many teams that conducted the outreach campaign simultaneously in all the three regions, ensuring that the people get the messages at their door steps.

What was the result: Kabanza operators came in large numbers to clear their motorcycles before the due date.

Speaking at one of the meetings at Mitundu trading centre in Lilongwe before a tumultuous crowd, the Manager Taxpayer Education (North & Centre), Thokozani Chiotcha, informed the audience that the Government had created a life time chance for them to clear their motorcycles at reduced cost to allow them obtain a Customs Clearance Certificate (CCC) with which to formally register their Kabanza with other Government relevant authorities.

‘’In recognition of your contribution to national economic development, the Government has created this window to enable you save by paying reduced Customs rates to clear your bicycles. Please, seize the opportunity now before it elapses,’’ hinted Chiwaya.

The Manager added that formal Customs clearance would allow Kabanza operators to enjoy peace of mind and ‘’this strengthens your status as legitimate transport providers,’’ she added.

By Jack Villa Chimutu