Malawi Revenue Authority (MRA) commissioner general John Biziwick says some of the four-by-four cars on the road are not properly cleared and from next year such cars will be impounded by the tax collecting body.
In an exclusive interview in Lilongwe after meeting traders to sensitise them on the importance of the Voluntary Compliance Window (VCW), Biziwick said most of the four by fours especially those brought into the country as second hand are not properly cleared.
The VCW is a tax initiative which provides an opportunity to taxpayers to pay their outstanding tax liabilities without the associated payment penalties, fines, interest or prosecution for late payment.
The VCW aims to encourage taxpayers to come forward on a voluntary basis to regularise their tax affairs with MRA and avoid the imposition of penalties and interest.
Said Biziwick: “What you see is that when Interpol is coming in to check for stolen cars most of the four by fours disappear from the streets and once they [Interpol] leave, the cars are back on the streets. We want to encourage these people to bring their cars forward so that they are properly registered because next year we will start confiscating them.”
“We know that if cars are not properly registered, then government is losing a lot of revenue and the owners of the cars are also never at peace and we want them to regularise their purchased assets,” he added.
Deputy national police publicist Kelvin Maigwa concurred with Biziwick that Interpol make regular visits to Malawi because some stolen cars find their way on the Malawi market.
Biziwick said MRA was aware that the business environment in the past years has been hostile not only in Malawi but the world at large hence his decision as Commissioner General to give tax relief.
“The law allows the Commissioner General to give tax relief to a taxpayer and I have used this privilege to introduce the VCW to enable you to continue your business smoothly,” said Biziwick.
He assured the business community that once they regularise their tax affairs they would be considered for tax clearance certificates, withholding tax exemptions certificate among other incentives MRA provides.
