I think governemnt  should find ways of taxing the vendor. they are free riders.

The Malawi Revenue Authority tax collection system should also be strengthened!

Considering the government initiative of flea markets, I think it's possible to tax vendors. Otherwise, since vendors' businesses are not quite formalised, this may be practically difficult. In fact, won't Malawians refer to the move as a return to the MCP terror days whereby it required enforcement for people to remit? Also, most vendors are saying the flea markets are not large enough and not adaptable to certain commodities (e.g. kaunjika). You will also note that in areas where there are flea markets, not all vendors are inside it.

Nonetheless, it's important that vendors be taxed as their businesses, though small on individual level, are huge on collective level.

The informal sector must be formalised so we can hv more people contributing to the govt coffers

Among other things, i believe the tax base can be increased by the

• Government motivating player who are active in the economy. At the moment there are companies and individuals who are paying income tax and corporation tax, however if these are not motivated, they will for example move to overseas whether as companies or individuals(thereby reducing the tax base). also, if for instance the health facilities are not improved, alot of well paid workers who also contribute to the tax base will die unnecessarily
• talking about including the informal sector in the tax bracket, i believe the starting point should be to ensure that everything must be documented. for instance the population must be registered and computerised, economic activities must be documented by ensuring that the banking system is used in all economic transctions. business registrations must be computerised and linked to MRA

 

ASSOCIATIONS. That's a good idea. I think it is MOAM, for example, which has brought some formalisation to the minibus sector. The association is able to enforce tax remittance on behalf of government. I also remember a time last year when another grouping was formed claiming to be a new association for minibus owners. This, of course, has died a silent death but it compels us to say that each association must be strengthened and supported if it is to have control over the membership. Otherwise, if a person running a business can choose to stay outside the association without any consequence of delineation, such formalisation may fail to yield fruits.

It's unfair for a formally employed person receiving K40000 per month gross to be taxed while a small-time chicken raiser making K20000 a week is not taxed. It seems the former is suffering from "being known and registered" and the latter is reaping from the fruits of being "informal".

Exactly..Thats Why this year's tax measures have transfered the tax burden to the formal sector. Much as consultations were done during the pre-budget sessions, what people suggested were not taken into account. Later on we start throwing insults to the donors. Then bring such burdens to the tax payer yet there are alot of other non tax payers out there who are doing businesses free lance. Some of these businesses are briefcase ones. We see women coming to our various offices selling shirts and suits and we humbly give them business. At the end of the month you pay tax whilst that business lady  doesnt pay any income tax. They could be married women and the Taxation Act states that all wifes earned income is deemed to be husbands income and should be assessed together when remitting taxes. How many married men in Malawi have their wife's income assessed together? You find its a few if at they are there.
The formal sector is indeed suffering at the expense of the informal. If we look at Minibus business as an example. Other than the trading licenses and road taxes, do these businesses pay tax. Do the owners assess Income taxes and remit it to MRA. These people are using infrastures built by government but they go away with it.
Malawi as a government needs to review its various documentations at all angles an set a record straight as to measures of setting up businesses. We talk of wealth distribution but the way Malawi is operating, it is not wealth distribution at all. It is reaping off the formal sector.
VERY VERY UNFAIR INDEED!!!

and looking our unepmloyment rate, which is also increasing, thanx to MRA's retrenchment and other organizations, we can't rely on such few numbers of people to develop this country. Were it not for the corruption that has infected the coutry, maybe the resources could be approaching the needed ammount. Vendors should come and help. They make lots of money only to pay K50 per day as a market fee. Can you rent a commercial building @ K50 a day?

FREE PRIMARY SCHOOL EDUCATION should be abolished. Let any primary school pupil pay MK100 per term.As some of us are aware, in 1994 the United Democratic Front (UDF), the elected democratic ruling party, introduced the Free Primary Education (FPE) policy. UDF used this policy during its campaign to gain support from the poor masses and it promised to waive fees for all primary school students. There was a lot of excitement when UDF finally erased fees for all primary school children. Enrolment rates rose from 1.9 million to 3.2 million pupils. The UDF government argued that the policy of FPE brought financial relief for parents, since 60% of rural Malawians were categorized as poor. If we put back the primary school fees, the government will get mk300 annually for each pupil. Total amount will be mk300 x 3200000=MK960MILLION PER YEAR.

never introduce new taxes as a form of broadening tax base but focus on how to capture more on the tax net!! But relook at the basics first. why do we have more tax evasions? Generally there are not fewer exemptions in Malawi and some people would want to find ways of making sure they run away from paying taxes as well. which means tax system may not be fair
 

Good idea. I support it. Wonder if free primary education has indeed produced notable gains in excess of the social costs.

and not only that, most of them evade the K50!

Its because there is no proper control of the system.

Do you have the evidence that MOAM remits the Taxes to MRA? And how are the Bus conductors and drivers assessed? Do you think the money they claim they receive per month is accurate and right? Do you know that minibus drivers work toward their bosses targets and that is MK5,000 per day? But I guarantee you they make more than that and that money in not assessed. At the main depots, are their log books or registers for the minibuses and buses that come their. because a logbook is what would determine the whole assessment. These days every bus has its route and its easy to determine the revenue one would make. The issue of receipts. But how many board buses and asks for receipts? NONE. We only think a receipt is mportant on long trips forgeting that it is a control measure. And it is of significant importance for even local trips.