LILONGWE-(MaraviPost)-The Malawi Revenue Authority (MRA) has 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 on Tuesday was briefing 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 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.
