Malawi has compiled tax incentives into a booklet to enable investors in the agriculture sectorunderstand the benefits they can realise from investing in the country.
Speaking during the launch of the booklet in Lilongwe yesterday, Minister of Agriculture Sam Kawale said the compilation has also consolidated the preferential treatment that exporters and importers within the Southern African Development Community (Sadc) and Common Market for Eastern and Southern Africa (Comesa) blocs get.
He said: “There are taxes that have been reduced or at most waived targeting investors in the areas of agriculture commercialisation and agriculture diversification.
“We want people to know them because all the while people have been thinking that it is expensive to invest in agriculture because of lack of vital information such as this.”
Kawalesaid the booklet also contains information on agriculture financing options, including National Economic Empowerment Fund (Neef) loans, the Agriculture Commercialisation project, the Policy Support for Agricultural Transformation project, the Shire Valley Transformation Programme, the Trade Programme and the Malawi Investment and Trade Centre.
The booklet also has information on various tariff and non-tariff exemptions and subsidies for agribusinesses within member States that promote free trade and make exporting and importing goods more cost-effective.
In his remarks, Malawi Revenue Authority (MRA) head of corporate affairs Steve Kapolomadismissed fears that the tax incentives will negatively impact on the authority’s revenue collection, saying that rather they will create an opportunity for more revenue in future.
“Think of it this way, when an investor has been given an opportunity to pay less tax, they will invest more and build a more vibrant business that will pay much more revenue later,” he said.
Kapoloma said the booklet is a good example of the benefits of collaboration because it is the outcome of collaborative efforts from the Ministry of Agriculture, Ministry of Finance and Ministry of Trade and Industry.
The 62-page booklet has detailed information on specific incentives in areas such as animal breeding, poultry farming, fishing industry, horticulture and irrigation.
Reads the booklet in part: “Import duty and value added tax [VAT] free on importation of livestock meant for breeding such as live bovine animals, live swine, sheep, poultry and goats.”
Eligibility for these incentives requires a permit from the ministry, an import licence from the ministry, valid MRA tax clearance certificate or withholding tax exemption certificate.
