Malawi is said to be losing out on much needed revenue due to smuggling of goods into the country via unchartered routes.
This according to the Parliamentary Committee on Industry, Trade and Tourism which has issued a report that indicates there is rampant cross border trading of smuggled goods such as sugar and beverages by various traders who are avoiding paying tax.
The committee’s Chairperson Simplex Chithyola told YBIZ that this is having a negative impact on the country since the people are evading paying taxes.
Apart from this he also explained that the practice also has diverse negative impacts on local traders who among numerous reasons are losing out on profit.
“We have informed the House of the degree and severity of smuggling in Malawi and how it affects Malawi’s economy,” said Chithyola.
He has since requested that government should reduce the tax on Malawian made products as one way to curb the vice.