The Malawi government has announced that the Value Added Tax (Vat) it imposed on milk has been removed.
This has been confirmed by Finance Minister Goodall Gondwe in his presentation of the 2017/18 national budget in Parliament today in the capital, Lilongwe.
According to Gondwe, this is meant to increase milk production in the country.
In the 2016/17 national budget, government had announced of 16.5 Vat on the dairy produce.
This had then seen private dairy companies reducing the amount of money which they spend to buy milk from farmers.
For example, the Lilongwe Dairy (2001) Limited reduced the price of buying raw milk price from K170 per litre to K155 for the months of February to May 2017 due to the same government directive.
This news could be a sigh of relief for dairy farmers.
Meanwhile, Gondwe has also announced a removal of tax on buses in the K 1.3 trillion budget.
Gondwe said Customs Procedure Code 443 which was created for buses and minibuses to be imported duty free in the past four years will be deleted adding that the decision has been made due to “excellent up take in the public passenger transport sector that ordinary Malawians are participating and in line with sun-set clauses on tax incentives policy that government has put in place.”
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