Youths pen Gondwe on UK-Malawi double taxation treaty

Network for citizen participation in governance and development disclosure, Activista, in conjunction with ActionAid Malawi have written Minister of Finance Goodall Gondwe to push for a win-win arrangement in the tax treaty between Malawi and her former colonial master, Britain.

The letter, which was delivered to Gondwe on Wednesday, urges the minister to push for a fair deal in the light of Britain stopping direct budgetary support to Malawi.
“We are calling on you Minister of Finance that before the end of March you should start to renegotiate the treaty with UK to ensure that UK companies pay their fair share of tax in the country,” reads the letter in part.
According to the group, this would guarantee a certain level of service delivery to the youth of Malawi.
The youth have said the lack of withholding taxes in the treaty could also encourage companies from other countries to fight for treaties that will necessitate them not to pay tax.
The letter, signed by youths and students from 14 districts and seven universities in the country, says reforming the treaty could have significant effects on Malawi tax revenue.
The youth say they are aware that when in government, the People’s Party (PP) attempted to revise the treaty, the outcome of whose negotiations are yet to be known. n