The Centre for Democracy and Economic Development Initiatives (CDEDI) has given the Tonse Alliance-led government seven days to remove “punitive taxes” on essential goods and services or face nationwide protests.

Addressing journalists in Lilongwe today, CDEDI executive director Sylvester Namiwa said they were concerned with neglect of duty by the Tonse Alliance to protect and promote the well-being of Malawians, including the underprivileged communities.

Namiwa said introduction of punitive tax regimes that have ended up punishing the poor people through loss of jobs, increase of prices for basic goods and services are a clear indication that the incumbent government does not care about the welfare of its citizens.

“A recent example is the introduction of 16.5 percent Value Added Tax (VAT) on cooking oil, a development that has pushed up the cost of living, and has turned most poor people into scavengers,” said Namiwa.

He said average Malawians are finding it hard to afford locally produced cooking oil following the skyrocketing of prices.

Prices of cooking oils have risen by an average of 100 percent since Tonse took over power from the erstwhile Democratic Progressive Party (DPP).

Namiwa said it is for this reason that CDEDI is challenging all Malawians of good will to join a crusade to force the Tonse Alliance Government, under President Dr. Lazarus Chakwera, to start championing pro-poor policies in order to protect the marginalized from hazardous smuggled edible oils that have flooded the local market.

“CDEDI has been forced to take this route, after we’ve realized that government has shut the door on the poor people, if the admission by the Director of Revenue in the Ministry of Finance, Mr. Kenneth Matupa is anything to go by. During a virtual meeting that was held recently between CDEDI and the ministry, Mr. Matupa made it very clear that the ministry was aware that the introduction of VAT on cooking oil has pushed up the prices of cooking oil on the local market, and that this has in turn opened up a market for smuggled oil products, whose safety nobody can guarantee,” he said.

Namiwa disclosed that Matupa admitted that there have been lapses in containing smuggling in general, not only on cooking oil, but on various products because the malpractice is being perpetuated, in most cases, by the influx of foreign nationals that are living in Malawi illegally and are doing their illegal businesses in undesignated premises.

A recent study by the Mangochi District Health Office on food fortification revealed that most people are consuming foods that do not contain the required mineral and vitamins, by indicating that out of the eight cooking oil samples which were scrutinized, only one contained the required Vitamin A.

Namiwa said after analyzing the outcome of the meeting, CDEDI feels there is either general neglect of duties by some officers in the law enforcement agencies responsible for containing the influx of both illegal goods and immigrants into the country or the Tonse Alliance administration is deliberately introducing the punitive tax regimes in order to suffocate the local industry in an attempt to bring in their own preferred business interests,” said Namiwa.

“The latter can be true, looking at the recent closure of private companies such as the Kanengo Tobacco Processors Limited in Lilongwe, and the announcement by Bakhresa Group of Companies that they are closing their soap making plant in Mzuzu. It appears the plan by the Tonse administration is working out perfectly well, since no government official, not even the responsible ministers for Trade and Industry, has come out to make a statement on this very sad development about the closure of companies in the country,” he said.

Namiwa assured that as an advocacy institution on human rights, CDEDI remains committed to stand for the voiceless and that their call for the immediate removal of VAT on cooking oil is aimed at protecting the rights of the vulnerable and marginalized communities.

He reiterated that the introduction of tax on cooking oil has made the poor people even more miserable, and has posed a great threat to the survival of the local industry, which besides creating jobs, is also bringing in the much-needed foreign exchange through the sale of the soya cake, a byproduct of cooking oil from soya beans.

“For the records, from such exports, the country realizes a minimum of US$60 million annually, and the industry is providing permanent employment to 1, 600 people and 800 casual labourers. If the Tonse Alliance administration is really serious about uplifting the livelihood of poor Malawians, then let them start implementing policies that really resonate well with the local people, such as scrapping off the 16.5% VAT on cooking oil; a product that is commonly and mostly used by the local people in the villages for small scale businesses such as making mandasi, locally made cakes, kanyenya (kebabs),” said Namiwa.

“CDEDI is, therefore, giving the Tonse Alliance Government seven (7) days to scrap off VAT on cooking oil, and find other means of generating revenue from the local manufacturers; commence a review of its tax regime in order to revise all the taxes that are chocking the local industry and hitting hard on the ordinary Malawians, 80 percent of whom are living in rural areas and depend on subsistence farming. Should this demand land on deaf ears, which is mostly the case with the current Tonse Alliance administration, then CDEDI will be left with no choice but to mobilize all Malawians of good will to hold nationwide demonstrations, until such demands are adhered to,” he warned.

By Emmanuel Mwandama, a Contributor

Minister of Gender, Children and Social Welfare Patricia Kaliati Friday launched her book ‘She participates’ which she said will be a mouthpiece for Malawian women who are facing a lot of challenges in accessing justice in areas of Gender, economic, political and social development.

The book launch was held at the Bingu International Convention Centre (BICC) but also on zoom where many people followed the event live.

“Women are the ones who are used mostly in several areas but the benefits do not go directly to them. Women must be given a chance to participate in various programmes if Malawi is to attain its social economic and political development goals,” said Kaliati.

Speaking at the event, Mary Chilima, wife to the State Vice President Saulos Chilima, commended Kaliati for the book saying the book will be used for policy making.

“The knowledge from ‘She Participates’ will serve as a reminder for women to actively participate in social economic development issues locally, nationally and internationally and encourage those in decision making to always recognize women’s presence,” said Chilima.

“This book will help several Government departments, institutions, Non-Governmental Organizations and individuals in policy making position to consider including the girl child and women in their pursuit for issue based developments. The book explains why women participation and social inclusions is paramount in achieving development goals and attaining MDGs,” added Chilima.

She said the book launch is a milestone for Kaliati’s career and profession as she has passion to see every girl child and women taking a leading role in policy and social economic development.

“Hon Dr. Kaliati has demonstrated the need to take her profile high in the fight for gender issues that affect her ministry and women in our communities, country and the world as a whole. Women need to be considered as both social, economic and political contributors rather than mere observers,” said Chilima.

She added that the country needs Ministers like Kaliati who can holistically and tirelessly contribute to scholarly and policy ideas for the country which will be used for decades and remain in stored knowledge for generations to come.

Also present at the function was the UN High Commissioner, several diplomatic representatives, NGOs, Government officials and concerned citizens.

By Watipaso Mzungu

Smallholder farmers from Dowa and Mchinji have expressed disappointment with the delay by the Tonse Alliance-led government to start championing pro-poor policies.

Speaking at a press briefing in Lilongwe this morning, the concerned farmers pleaded with the government to remove value added tax (VAT) on cooking oil to save local cooking oil producers from closing their shops.

The Centre for Democracy and Economic Development Initiatives (CDEDI) facilitated the press briefing to provide the farmers and consumers a platform to voice their concerns on the flying prices of cooking oil as a result of the re-imposition of VAT on the edible cooking oil.

The Finance Minister Hon. Felix Mlusu, while presenting the 2020/2021 national budget, announced the introduction of 16.5 percent Value Added Tax (VAT) on cooking oil.

Stakeholders such as CDEDI and other economic and social commentators advised government to rescind its decision, but to no avail.

And contrary to Mlusu’s assurances that government’s decision would not affect prices for cooking oil on the local market, the prices have skyrocketed, with a price adjustment of almost 100 percent for all the locally manufactured oils.

This has paralyzed the market for the local cooking oil as consumers opt for the cheaper and uncertified oil imported from Mozambique and other countries.

This week, the local manufacturers have warned that they will be forced to lay off almost 50 percent of their workforce should the Malawi government fail to intervene on the matter, by swiftly moving in to scrap off the recently introduced VAT on cooking oil.

A farmer of soya beans from Traditional Authority Dzoole in Dowa, Blesssings Mkungula, feared the influx of foreign cooking oil on the local market will lead to the closure of the companies, which will negatively affect smallholder farmers.

“Where are we going to sell our soya beans and sunflower if these companies close shop? This government should have heeded calls from various stakeholders who cautioned the government against reintroducing VAT on cooking oil,” said Mkungula.

Zainab Mitole, a farmer from Mchinji, took a swipe at President Dr. Lazarus Chakwera’s government for failing to translate the Tonse promises into action.

Mitole said the Tonse government has demonstrated that it has no clue on how to deal with challenges that citizens are facing.

And in his remarks, CDEDI executive director Sylvester Namiwa said they had noted with shock on how the national assembly had skirted around the more pressing issues that are biting hard on the poor, such as some punitive tax policies, which the mid-year budget review session of parliament had smartly dodged.

Namiwa said CDEDI is being vindicated on its earlier warning that Malawians were sold a dummy in the name of the Tonse Alliance government, which cares less about the poor people, contrary to the alliance partners’ sugar-coated campaign promises that are hardly being fulfilled.

“Today, the average Malawians are failing to eat the promised decent three meals a day, simply because they cannot afford to buy cooking oil. Instead of creating the much touted 1 million jobs, there are gloomy faces of people on the streets who have either lost their jobs, or are hopelessly looking for a job. The local cooking oil manufacturers are slowly being pushed out of the market by some business people who are smuggling low quality and hazardous cooking oil into the country, at cheaper prices, thereby putting the lives of many Malawians in danger,” he said.

Namiwa said it is sad that the threats from the local cooking oil producers have come hot on the heels of the news about the closure of a tobacco processing firm in Lilongwe recently, thereby rendering hundreds of Malawians jobless!

“And to add salt to the injury, the Minister of Labour, Hon. Ken Kandodo shamelessly told Malawians that the Tonse Alliance government is unable to tell on whether or not the 1 million jobs are indeed being created. Should Malawians really expect a better Malawi anytime soon? Hon. Kandodo’s statement can easily be answered by the job losses the Tonse Alliance government is facilitating. The scaling down of cooking oil production has affected the prices of raw materials for the commodity, such as soya beans and sunflower due low demand from the manufacturers, thereby hitting very hard on the small-scale farmers who mostly rely on these cash crops for their livelihood,” he said.

The CDEDI boss challenged that if the Tonse Alliance administration is really serious about uplifting the livelihood of poor Malawians, then it should start implementing policies that really resonate well with the local people, such as scrapping off the 16.5 percent VAT on cooking oil.

“Otherwise CDEDI has left it up to all Malawians that mean well for this country, to be the best judges, especially now when they have been offered yet another opportunity to have their voices resoundingly heard this coming Tuesday, March 30, 2021 when they will be going to cast their votes during the bye-elections that are taking place in some parts of the country,” said Namiwa.