Malawi withdraws Vat on milk

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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.

Dairy farmers could now smile. (Google image credit to Hobby Farms)

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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38 Comments

  1. Few commodities must follow…not only milk.. Maize flour..Sugar…lighting paraffin..Salt…and Cooking oil….these are basic household items the gov’t must subsidise them!

  2. Muchose vat pa sugar not pa mkaka. Mkaka umagulidwa kwambiri muno town. Tawaganizirakoni anthu akumudzi nawo amafuna shuga oti aziika muphala ana akamapita ku sukulu. Komaso muchose vat pa madzi mwina tipuma kumwako zithaphwizi.

  3. U remove vat ku mkaka bwanji osachosa ku sugar? Ife akumudzi za mkaka sitimaziziwa koma sugar.kumudzi kuno anthu anasiya kale kugula sugar wa mapacket,tinkagula woyeza musupuni kutereku asiyanso kamba koti sakupezanso mphindu. Kodi dzikoli ndi la anthu a town okha?

  4. How many people drink milk in Malawi? Govt knows that very little is realized from milk vat and they can do away with it. Removing vat on tap water would have been ideal.

  5. Why not remove VAT on water? u already know that with or without vat on milk no difference as to most malawians milk is luxury. akanakhala madzi ndikanadumpha as people are using unsafe water because of high water bills including vat.

  6. Zoonadi chimwere mkaka 2012 ndimwanso chaka chino.Big up government for removing vat on milk.Mawa ndipita Ku Grocery ndi k50 yanga ndikayese kugula fresh milk 250g kkkkkk