Customs new Tax Measures - February 2022

Government has removed import duty and excise tax on solar lamps, solar fridges, sanitary pads, tyre retreads and spare parts for energy generation and distribution. Finance Minister Sosten Gwengwe announced the Customs & Excise new tax measures on Friday 18 February 2022 during the presentation of the 2022/23 budget.

The removal of import duty and excise tax on solar lamps and solar fridges is aimed at supporting the use of alternative sources of energy and assisting rural masses that are off the national grid.

The importation of sanitary pads will no longer attract import duty and excise tax as government seeks to make them easily accessible and affordable as one way of supporting general feminine hygiene.

The removal of import duty and excise tax on interchangeable tyre retreads used for the manufacturing of tyres seeks to support the growth of the transport sector and the tyre manufacturing industry.  Spare parts for use in energy generation and distribution will no longer attract import duty excise and VAT but this does not apply to motor vehicle spare parts.

Government has reduced the minimum value addition requirement under the Industrial Rebate Scheme and introduced four categories. Each category has a minimum value addition requirement ranging from 5% to 35%.

Other Customs and Excise amendments are as follows; Introduction of 10% import duty on glycerin imported in bulk; Introduction of 15% import duty and 16.5% VAT on moulds; Amendments to Customs Procedure Codes (CPCs) 447, 449 and 496; Increase of the surcharge on blankets from 10% to 20%; and increase in processing fees by importers from K15, 000 to K20, 000.

These Customs & Excise tax measures became effective at midnight on 18 February 2022. Visit www.mra.mw for more information.