Malawi

DPP administration insensitive for introducing VAT on exercise boosk—Jessie Kabwira

Jessie Kabwira
Kabwira addressing the CODACHOMs gathering
Kabwira addressing the CODACHOMs gathering

LILONGWE (MaraviPost)—The main opposition Malawi Congress Party (MCP) through its Spokesperson Dr. Jessie Kabwira has accused the Democratic Progressive Party (DPP) led government for secretly introducing 14 % of Value Added Tax (VAT) on exercise books.Dr. Kabwira said that the introduction of VAT on such an important writing material for students particularly in primary schools will perpetuate drop outs and early marriages.

Finance Minister Goodall Gondwe has however confirmed the introduction of the tax on exercise books, which is seen as a sign of under pressure to collect more revenues for the nation budget.

The tax introduction on exercise books comes barely a week after Malawi Parliament passed MK1.149 trillion 2016/2017 national budget which is heavily depending on local resources.

The revelation of VAT on school writing materials comes just  a day public school closed on last Friday, July 15 till September.

It means that parents and guardian will need to spend more on their children on writing materials in the next academic year.

The 2016/2017 national budget has already a punitive package due to other taxes on essential commodities for the rural people whose income still remain less than a dollar a day.

The commodities which have also VAT including sugar, salt, soap, bread whose prices will likely go up making already stricken local communities keep on straggling with life.

While on the other hand the country increasingly continues to face huge economic problems and persistent food shortages due to natural disasters.

Speaking in an interview with The Maravi Post over the weekend in the capital Lilongwe after presiding over the 10 years of existence for the charitable grouping, Community Development and Children of Hope Ministries (CODACHOM), Dr.Kabwira said it was insensitive for government to introduce taxes on exercise books considering the social-economic ills Malawians are going through.

Kabwira who is also MCPs Shadow Minister on Gender, women and child welfare observed that the move will increase school drop outs and escalate early marriages as most parents in rural areas will not afford to pay more on children.

She said the decision defeats governments its own policy on promotion of universal access to education for all in the country.

“This is uncalled for decision to have taxes on school writing materials. Malawians are already struggling with taxes on salt, salt, soap, bread. These are essential basic needs commodities for rural people.

“The move will likely to enhance school drop outs and early marriages as most parents won’t afford to pay more. It could have been better if public schools provide writing materials the way they used to doing in the past. But the case is different now,” said Kabwira.

On CODACHOM ten years of existence, Kabwira lauded the organization for its effort to uplift the marginalized children and women with material and financial support from locally mobilized resources.

She therefore pledged the institution for local and international linkages that it gets full financial support for its operation.

In his words, Pastor Steven Mkopeka, CODACHOMs Director appealed for more material and financial support in a bid to reach more vulnerable groups in its operating area.

Community Development and Children of Hope Ministries is locally based organization operating in the capital Lilongwe with the aim to share Gods heart for the poor and making life real through love. In the past 10 years, the organization has managed to sponsor over 24 need student to various secondary and tertiary education.

The grouping which has no sponsor yet also provides entrepreneurship skills including tailoring and knitting to vulnerable women for an economic empowerment.

Meanwhile, Economist Henry Kachaje has taken to social media about the introduction of the VAT. The post is attracting many comments as Malawians expressed concern over the decision by the government to introduce the 14 per cent tax on exercise books which will push up the cost of educating a child in an already volatile economic climate.