FMB advises govt on investment, taxes
FMB Bank executive director Sean O’Neill on Monday said both Malawi government and the private sector need to provide credible information to potential investors.
O’Neill said this in Blantyre where his bank launched Central African Stock Exchange Handbook meant to improve knowledge of investment opportunities available in Malawi and other countries in the region.
He said investors need information from government on the state of the nation, especially on the economy, before they invest in a country.
He said the private sector, too, has a duty to comment on national issues and, where necessary, offer constructive criticism on how government is running its affairs.
On the 2012/13 nation budget, O’Neill said it gives hope for the future, adding that government’s promise on fiscal rectitude is welcome although zero net domestic financing may prove challenging in maintaining positive real interest rates. He felt that Malawi still appears to be meddling with legislation, citing the removal of conflict between the Tax Act and other statutes as examples.
“On the Pension Act, it will finally give companies full relief for mandatory pension contributions. On the other hand, the reduced 15 percent tax rate for income of pension funds will reduce listed equities and advantages over money market instruments when pension fund managers consider after tax returns,” he said.
He also called on government to address some of the contradictions within the Tax Act, starting with the dividend tax.
