As pressure continues to mount on President Joyce Banda to act on looting of public resources, the private sector has warned that it would stop paying taxes until the system is cleaned.
Malawi Confederation of Chambers of Commerce and Industry (MCCCI) chief executive Chancellor Kaferapanjira said yesterday the donor community should also stop funding government because it could refuse to be accountable to the taxpayers based on external support.
“With all the chaos and looting taking place at Capital Hill with impunity, the main funders of government coffers, the private sector, are considering the possibility of suspending payment of taxes until it is sure that the money will be used for the right activities,” said Kaferapanjira.
He said the move to consider suspending payment of taxes would be in “protest against public financial mismanagement.”
He said: “What is even more disturbing to the private sector is the fact that leadership seems not to be eager to resolve the problem, which may suggest a deliberate attempt to put such serious issues under the carpet.”
Kaferapanjira said it was sad to expect government ministries such as Ministry of Health, Ministry of Local Government and Rural Development, Ministry of Agriculture and Food Security or Ministry of Education, Science and Technology to operate on thin budgets they are currently receiving.
“In the end, the private sector is not getting the services it should get from such ministries. At the same time the Malawi Revenue Authority (MRA) is always over-collecting overall yet the failure of systems in the Ministry of Finance is enriching individuals,” he said.
“That is why the private sector is thinking of the possibility of a move in which it would deposit tax money in a suspense account where government cannot access until it cleans its house,” said the MCCCI boss.
The call follows a 30 days ultimatum, which the grand civil society coalition has given the Banda administration to act or they will mobilise Malawians to stop paying taxes.
