Demos will affect govt revenue – Reserve Bank     

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The Reserve Bank of Malawi (RBM) says it expects government revenue to take a hit due to the post-election demonstrations.

RBM Governor Kabambe said this on Friday in Mzuzu where he held a press briefing to present a statement on the monetary policy.

Kabambe: revenue will take a hit

He said if the demonstrations continue government will lose revenue since businesses cannot make a lot of money hence affecting the amount in tax channeled to the government.

“Business is affected meaning that those who are closing are not selling anything at the end of the day. Businesses are facing the same level of cost, workers will receive their salaries while producing less goods because some days there was demonstrations, people did not come to work and business did not produce enough, that would affect the level of income.

“If the demonstrations continue, revenue that goes to Government might go down. Companies’ return will be less and too the revenue that goes to Government will be less, this will indeed affect both government and business as the whole,” said Kabambe.

He then urged all parties concerned to find ways to stop the demonstrations.

The latest post-election demonstrations were conducted on Thursday when protesters across the country looted shops, burnt buildings and pelted stones at offices.

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