By Dorica Mtenje
LILONGWE-(MaraviPost)-The country’s Consumers Association of Malawi (CAMA) has demanded the Cooking Oil refiners in the country to reduce prices of cooking oil on the market following the removal of Value added Tax (VAT) on the product.
CAMA Chief Executive Officer(CEO) John Kapito, disclosed this in a statement that cooking oil Producers in the country claimed that the commodity’s prices went up because of the introduction of VAT
Kapito said consumers therefore should begin to reap the benefits following the removal of VAT on the product.
“As Consumers, we are expecting the Cooking Oil Producers to immediately take necessary steps to reciprocate what Government has done by removing the VAT
on Cooking Oils which was the only singled contributing variable that the industry said was the reason for the current high prices of Cooking Oils in the country.
“Consumers will not accept any other reasons for failure to reduce prices,” said Kapito
He said the cooking oil refining companies went all over lobbying for the removal of VAT on the product saying was the only contributing factor to the rise in prices.
However, when CAMA provided additional information to the reasons leading to the rise of cooking oil prices in the country with statistics.
But the refining companies denied any of those figures presented by CAMA claiming the rise in prices was dependent on nothing else but the VAT.
Kapito said the companies accused Government of introducing VAT which made many Malawians unable to access the product especially in the rural areas.
“This resulted in government removing the VAT on cooking Oils as a way to make the product more accessible to everyone,” says Kapito.
He said currently there is no reason for the refining companies to make delays in reducing the product prices following the removal of VAT hence the need to take down the prices immediately.
CAMA has also urged government to ensure that the cooking oil refining companies are monitored as Consumers are currently looking forward to the reduced prices.
There has not been any comments from local cooking oil refining companies on VAT removal.