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Of taxes on car imports
In an economic report: Barriers to Business Expansion in Malawi’s New Policy Environment (see African Economic Policy discussion paper 39 of 2001) high taxes were regarded among constraints to investment in Malawi in addition to lack of security, high transport cost; high cost of raw materials; lack of skilled labour; lack of reliable supply of locally produced inputs and others.
While most of these constraints are still facing the local investor, my intend this time is to share with the reader the constraints faced by a Malawian and other development partners when it comes to importing vehicles.
Even though I don’t have actual figures, the government is charging more than 50 percent and in some cases 150 percent import duty on vehicles. These high charges are not only restrictive to buy cars but they are also some of the causes to high accidents happening on our roads due to unroad-worthy vehicles.
Purchasing a car in addition to transportation from whichever global corner is very cheap. But paying to the government three times higher the basic price of a car is denying citizen ideal transport and effective means of development.
Transportation is a key sector of development. It is wrong to look at trucks and public transport only forgetting the local means used by a manager or a messenger. A country like Malawi that has failed to improve its public transport should balance by allowing more of its citizen buying good cars.
Importation of good cars can not only improve transportation problems faced by rural people, but can improve the movement of commodities from farms, create employment, lower food prices and reduce poverty. Availability of vehicles due to reduced duties will allow removal of ugly looking taxis in our cities, facilitate communication between social groups and improve household incomes.
A country that is lacking finance facilities to its people should create policies that can cushion junior managers to facilitate distribution of income.
Current policies are chocking the few individuals who are responsible for tax revenue. Malawians cannot access fresh air economically as each and every commodity is extremely very high ranging from primary education to a packet of sugar at village level.
Malawians are facing an uphill to implementing their business ideas because there’s no one to understand problems they face when it comes to importation duties. The worst thing is that even NGOs and research institutions are now subjected to high taxes….what next?
My argument is that vehicle import duties have suffocated many and have failed to improve road infrastructure in Malawi. These taxes have been used to support political agendas failing to control congestions that are common in our cities.
Bringing in cars from Japan, South Africa or Europe should be one of the benefits that Malawians should be proud of considering that we don’t assemble cars in Malawi. Having a car is no longer a luxurious issue now days and should not be taken as a sign of richness, but a right to better transport.
As if the duties are not high and mind-numbing, the process to have the car registered is even worse, siphoning the poor resource Malawian. How many agents should I meet to have a £400 car used on the road to see Chief Malili? How many clerical officers should I buy beer before my small car is on the road to Mkwinda?
The government should try to use middle-income people to contribute effectively to the development of this country by giving them breathing space on these taxes and community prices. Excess income should be with the citizen and not the government, especially those led by corrupt leaders.
If we can utilise all economic reports and findings available in Malawi, the country could have been competing favourably in the Sadc region, Apo biiiii, I will bring a bicycle. Tikayendanso pansi, anthu akumayimba nyimbo kuti angobwerako ndi T/Shirt yolemba London.
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