Alick Nzangaya
An organization advocating for peace and development, People’s Federation for National Peace and Development (PEFENAP) has demanded suspension of enforcement of some sections of the amended Value Added Tax Act.
The development follows a recent announcement by the Bankers Association of Malawi (BAM) that government has introduced VAT on some banking transactions.
BAM Press Statement which was signed by the Acting Chief Executive Officer Lyness Nkungula, indicated that from 1st November, some banking services will attract a VAT of 16.5%.
Nkungula said the development follows the newly amended VAT Act in the previous sitting of Parliament but in a twist of events, the Malawi Revenue Authority quashed the announcement.
Speaking to Prime Time News on the matter, PEFENAP Executive Director Edward Chaka said government is playing hide and seek on the matter and has since advised the authorities to do something immediately.
Chaka asked government and members of Parliament to soberly review the amended VAT act saying this will affect the actualization of people’s right to economic activity, equality and dignity.
“PEFENAP in light of the foregoing and public concerns, we are appealing that the above amendments should not be enforced and that Malawi government swiftly withdrawal the enactment of this punitive abusive, cruel, inhumane and degrading law.
“The enforced amendments will grossly affect matters of financial inclusion especially bearing in mind the negative financial dynamics experienced in the wake of COVID 19,” said Chaka.
He added that if nothing will happen on the matter, there is a potential of widening the gap between the rich and financially marginalized members of the community.
Chaka further said: “The amended law has added VAT on interchange fees between banks, posing economic insecurity to customers and the citizens national wide as Citizens may resort household suitcase banking which is a recipe for increased crime rate.”
He concluded by saying PEFENAP aims at creating a platform where vulnerable and marginalized individuals have equal access to socio-economic justice, human rights and fundamental freedoms.
Earlier this week rights group, Human Rights Defenders Coalition (HRDC), penned the Attorney General Thabo Chakaka Nyirenda to order the suspension of some sections of the amended VAT Act.
