Cdedi demands action on cigarette manufacturer
Centre for Democracy and Economic Development Initiatives (Cdedi) has lamented the increase of unscrupulous traders with foreign connections allegedly colluding with public officers to break the law.
Over the past weeks, as part of its tax justice initiative, Cdedi engaged Malawi Revenue Authority (MRA), Competition and Fair Trading Commission (CFTC), Malawi Bureau of Standards (MBS), Department of Immigration and Citizenship Services and Anti-Corruption Bureau (ACB) to probe a Lilongwe-based cigarette manufacturer Credible Investments Limited (CIL), formerly Best Distribution Limited.
“Our interest has been ignited by the fact that Malawians are seething with rage, given that while the majority are needlessly being over-taxed, those politically-connected, and entities are being protected by some bad elements at MRA, the ruling elite or other State entities, for personal gains,” claimed Cdedi executive director Sylvester Namiwa.
According to letters the group has written to the said public institutions, it accuses CIL, which operates from Njewa in Lilongwe Rural, of illegally dealing in Caesar Red and Viking Red cigarettes.
Among others, Cdedi claims the company sells the cigarettes without tax stamp and expiry date contrary to MRA excise tax stamps regulation.
“Secondly, the company is importing Viking Red cigarettes bearing Zambia Revenue Authority [ZRA] excise tax stamp, implying that the product is illegal and, worse still, MRA is collecting nothing from sales of these products,” wrote Cdedi in its letter to MBS director general Bernard Thole on March 25 2024.
On March 5 2024, Cdedi engaged MRA director general John Biziwick requesting him to make available CIL’s value-added tax (VAT) machine duplicates for almost 400 cartons sold to various wholesalers in Central and Northern regions between January and February 2024 amounting to about K190 million.
But, in response, MRA rebuffed Cdedi, arguing, among others, that taxpayers’ personal and financial information was confidential and can only be used for purposes of carrying out lawful duties.
“We cannot comply with your request to provide information but have taken note of the allegations raised and will investigate accordingly,” reads MRA’s response, dated March 28 2024 and signed by information officer Dorothy Mataya.
According to Namiwa, despite MBS promising to act, the rest only acknowledged receipt of the letters but are yet to act on the issues raised, a development that raises suspicions.
“Should MRA, MBS, CFTC and Immigration not act within seven days, we will name and shame those involved,” warned Namiwa.
