VAT contributing to the use of unchartered routes

Cross Border Traders (CBT) in Mchinji have faulted value added tax (VAT) as one of the reasons they opt for unchartered routes.

This was said on Saturday in Mchinji, during a day- long assessment study for Simplified Trade Regime (STR) organised by the Common Market for Eastern and Southern Africa (Comesa) at Campus lodge.

Delegates to the meeting, which attracted cross border traders in the district said, VAT is expensive resulting in them not making profits as expected hence opting for unchattered routes.

“Sometimes you see that you will make money if you won’t bring your merchandise on the border posts, you just proceed using the unchartered routes so that you find something, this VAT thing leaves a lot to be desired.

“We can’t make profits with it, unless government reduces it,” said Cosmas Mwanza, a cross border trader who runs a grocery business at the Mwami boarder in the district,” said Comesa CBT desk coordinator, John Chirwa.

He said his organisation came up with the assessment study as one way of sensitising the CBT on the STR and how they can be helped once they go to the border posts.

He noted that the Malawian side has got problems in the use of the STR due to processing fees which people run away from paying; adding that lack of knowledge on benefits of using border posts and STR is affecting the use of the border posts by Malawians.

“I have noted that lack of knowledge on taxation and customs is affecting Malawian traders a lot, this workshop has been an eye opener to most of them and I believe they have learnt something on STR and how to use the borders,” he said.

Chirwa said his organisation will continue carrying out sensitisation meetings on issues concerning STR which they have already done in Chipata by using public media houses and brochures.