Malawi Revenue Authority (MRA) has paid over 6 billion kwacha as refund to tobacco farmers and this relates to the 3 percent withholding tax which government was deducting before 2021.
Speaking to Malawi MRA Commissioner General John Bizwick said they have refunded the money to 11000 farmers and this is good news considering that most of the farmers were refunded during the critical period when they need money to buy fertilizer.
“The main agenda with the tobacco farmers club leaders was to explain to them the process which we undertook to settle their refund claims for the tobacco which they sold 2 years ago. Up to date I think we have paid over 6 billion kwacha as refund to the tobacco farmers and this relates to the 3 percent withholding tax which government was deducting before 2021, but as you are aware since 2021 the withholding tax of tobacco sales has been reduced to 1 percent which is the value tax,” explained Bizwick.
Bizwick added that the process wasn’t taking so long because for anybody to get a refund at MRA they need process and reconcile the submission from the applicant.
“For most of the tobacco farmers after they have sold the tobacco and they have been deducted the 3 percent the process to reconsile their accounts was taking so long and some actually decided not even to come at MRA but when the withholding tax was reduced from 3 percent to 1 percent then they decided to come for refund. So now the process is much shorter and we have had so many applications,” said Bizwick.
In his remarks, Tobacco Commission CEO Joseph Chidanti Malunga said as a commission they are happy with what MRA has done to tobacco farmers saying it will motivate many farmers to start tobacco farming.
“We are very happy as you know one thing that we do as the commission is to make sure a grower is happy and our business is very sensitive one. If the the grower is not happy it means they are not gonna be in the systems the following season but now that MRA has started doing this it is a very good news and I think it’s gonna excite our growers and you will see more growers coming into this business,” said Malunga.
Chairman of Tobacco farmers Lyson Artwell Banda said as tobacco farmers they are very happy with what MRA has done to them.
“As tobacco farmers, we are very excited with this because MRA has given us the money when we needed it the most. Most of us during the period of rainy season we have nothing and you know farming needs a lot. So MRA gave us the money during that period and it really helped us alot,” said Banda.
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