Malawi: Balaka-based Cutrate Traders has supported the re-introduction of 16.5% Value Added Tax regrets smuggling of products from Mozambique

By Abdul Rahman Bangura– 

NEW AFRICA DAILY NEWS (NADN) Freetown, Sierra Leone- Sosten Gwengwe, Melawi’s Minister of Trade concedes that, smuggling is a primary menace to the local industry. Smuggling is the unlawful importation or exportation of goods subject to customs control.

Cutrate Traders Acting General Manager – Austin Majawa, whose company is a distributor of cooking oil in the Eastern Region, said since the introduction of Value Added Tax (VAT), cooking oil industries have boosted prices of the product but about 30% resulting in them forfeiting business.

He meant, this has coerced crooked traders to buy cooking oil from Mozambique and smuggle it into the country through permeable borders in the region.

“We used to buy a 200 litters drum of cooking oil at K18 000, but now the price has gone up to K200 000 and this is killing our business as people are no longer buying from us,” let out Majawa.

He expanded that, the crisis is not vital the re-introduced VAT but the ineptitude by government to deter smuggling of cooking oil in the country, saying they are now stuck with drums of cooking oil as people choose to buy cheap smuggled from Mozambique where there is no VAT on cooking oil.

For New Africa Daily News Abdul Rahman Bangura Reports,  Africa Correspondent

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