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HomeBusinessCooking oil companies defy Chakwera's VAT removal as prices soar

Cooking oil companies defy Chakwera’s VAT removal as prices soar

LILONGWE-(MaraviPost)-Cooking oil refining companies have not responded to President Lazarus Chakwera’s Tonse government tax removal on cooking oil, instead the community’s prices has gone up drastically.

Following Finance Minister Sosten Gwengwe’s announcement that government removed 16% Value Added Tax (VAT) on cooking oil, the public expected lowering of the item’s prices but the case is different on the market.

From MK1, 500 two years ago now selling MK7,590

The Maravi Post spot check in chain stores and retail shops across the country, show that cooking oil prices have gone up sarcastically.

For instance 1 litre cooking oil hovers at MK3, 500, 2 litre is pegged at MK,7600 while 5 litre cost MK14, 400 that two years ago the commodity was MK900, MK2,400 and MK4,500 respectively.

“Instead prices going down, cooking oil is up beyond imagination. What type of leadership is this? What is making cooking oil manufacturers and suppliers not to reduce the price despite VAT removal? wonders Pascal Ng’ambi, Mzuzu resident.

Zomba consumer chips in, “Is there any reasons apart from VAT that government is hiding from us on why cooking oil companies aren’t responding?”.

This publication understands that the country has ran out of raw materials including soya beans, sun flower and among other.

This has forced local manufacturers importing the raw material at high rates due to depreciation of Malawi currency Kwacha.

Information Minister Gospel Kazako however last month dared cooking oil manufacturers and suppliers to reduces the item’s prices following 16% VAT removal.

Kazako told the government faces the press on Wednesday, February 23, 2022 that oil manufacturers have on any excuses to delay reducing the commodity’s prices.

The minister expected oil companies and suppliers to quickly reduce item’s prices once due processes are done at Parliament.

“There was no any reason to hike cooking oil prices apart from the VAT that was put on the commodity. Now, government expects nothing but to reduce the item’s prices to where it was two years ago.

“If they fail to reduce the prices, then Malawians have to question their motive. Even, hiking of cooking oil prices were exorbitant regarding to mere 16% VAT on it. We are expecting them to respond quickly”, dares Kazako.

The minister has not responded to the latest soaring of cooking oil.

Cooking oil manufactures including Sun Seed oil has not make any statement regarding to government VAT removal on the product but instead resort hiking the commodity.

Lloyd M’bwana
Lloyd M’bwana
I'm a Lilongwe University of Agriculture and Natural Resource (LUANAR)'s Environmental Science graduate (Malawi) and UK's ICM Journalism and Media studies scholar. Also University of Malawi (UNIMA) Library Science Scholar. I have been The Malawi Country Manager and duty editor for the Maravi Post since 2019. My duty editor’s job is to ensure that the news is covered properly, that it is delivered on time, and that it is created to the standards set out in the editorial guidelines of the Maravi Post.
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