President Chakwera for flexible taxes, loans

President Lazarus Chakwera says his administration will collaborate with money lending institutions to chart a path that will lead to attainment of flexible conditions to loans.

He said this on Tuesday during a meeting with Lilongwe vendors at Kamuzu Palace.

The President observed that a majority of underprivileged families are not able to access loans due to prohibitive conditions such as collateral.

“This will lead to the poor getting poorer and the rich getting richer. So, we need a good balance,” said Chakwera.  

His remarks came in the wake of earlier appeals by the vendors for the government to ensure that businesses have access to plum loans with flexible conditions.

Chakwera also promised the vendors that government will work out flexible tax measures which will ensure that businesses thrive. 

“We are all obliged to pay taxes but they should not be distressing businesses,” he said.

The vendors’ chairperson Hardwell Kachibekete asked government to ease some taxes imposed by the Malawi Revenue Authority.

He said the punitive taxes were rendering small and mediuam businesses, unsustainable and stunting their growth.

Kachibekete also asked government to raise the ceiling for National Economic Empowerment Fund Limited loans (Neef).

The State-owned body disburses a minimum of K1 million per individual for businesses accessing group loans.

As for individual loans, Neef gives out loans ranging from K5 million to K250 million depending on one’s ability to repay.

Minister of Local Government, Unity and Culture Richard Chimwendo Banda urged the President to consider scrapping off collateral security for applicants of loans in government institutions.

He argued that the requirement is a stumbling block to the underprivileged that want to venture into business.