DOWA-(MaraviPost)-Parliamentary Committee on Natural Resources and Climate Change management says revisions have to be made on carbon tax implementation that all government vehicles should comply with the order.
Currently only private local and foreign registered own vehicles are paying the tax since its implementation November 25, 2019.
The committee chairperson Halima Daudi told Stakeholders engagement on government processes in response to climate change adaptation and environmental management workshop on Monday, March 30, 2020, Mponera Dowa that not only private owned vehicles are not secured.
Daudi therefore urged the authority to put monitoring mechanism on how the carbon tax proceeds collected and channeled to climate fund
Civil Society Network on Climate Change (CISONECC) organised the conference in a bid to solicit views from its stakeholders on how best Carbon Tax and the National Climate Change Fund can be easily implemented in the country.
“All Malawi government vehicles must pay the carbon tax as their cars aren’t only ones not secured. And let the funds also be channeled towards climate change fund for its proper usage.
“Our committee will make sure that reviews are made in the implementation of carbon tax,” assures Daudi.
CISONECC National Coordinator Julius Ng’oma disputes the decision of depositing funds from carbon tax to account number one of Malawi Government
Ng’oma observed that funds will be subjected to abuse than its intended purposes.
“The funds from the carbon tax be deposited into the National Climate Change Management Fund or the Environmental Management Fund not account number ONE. We wants accountability of the funds,” urges N’goma.
In January, 2020, Malawi Revenue Authority (MRA) collected about MK600 million from both foreign and locally registered motor vehicles since its implementation of the carbon tax on November 25, 2019.
The revenue body briefed Ministry of Natural Resources and Ministry of Finance when faced Parliamentary Committee in Natural Resources and Climate Change on management of carbon tax levy and removal of taxes on Liquid Petroleum Gas (LPG).
According to MRA, the carbon tax which is paid once a year, is charged depending on cylinder capacity (CC) of the motor vehicle which ranges from MK4, 000 for smaller vehicles to MK15,500 for vehicles with more than 3000CC.
The then Natural Resources Parliamentary Committee Chairperson Welani Chilenga expressed sadness over government decision to exempt state vehicles from carbon tax.
Chilenga argued that the exemption on carbon levy was not good saying revenue is being lost in the process.
But Principal Secretary to the Treasury Cliff Chiunda told the committee that government will get clear feedback from MRA on the matter.
During presentation of the 2019/2020 budget statement in Parliament Minister of Finance, Economic Planning and Development Joseph Mwanamveka said government introduced a carbon tax on local and foreign registered motor vehicles as a source of domestic resources for climate change management.
Ministry of Natural Resources, Energy and Mining there submitted a request to the Ministry of Finance inquiring about the modalities of transfer of the carbon levy to the environment fund which the ministry in collaboration with Malawi Environmental Protection Agency (MEPA) will use for its operational purposes including addressing environmental degradation and ensuring environmental protection.
Meanwhile the public is still skeptical on carbon tax proceeds usage.
On average MRA is collecting MK200 million monthly from carbon tax with a target of MK1.7 billion by June 2020.
