BLANTYRE-(MaraviPost)—Economic experts have estimated that Malawi will be losing about K4 billion during the yet to roll out duty free week.
This follows the passing of a legislation by parliament that permits government to designate a week in which duty will be exempted on imported goods worth not more than 3 thousand dollars.
Commenting on the projected loss, Steve Kapoloma, who is head of corporate affairs at the MRA, expressed optimism that the body will be able to manage to cover the projected loss in revenue that will be incurred during the duty free week.
Kapoloma has since said the increase in importation of goods will boost local businesses that will in turn increase collection through domestic taxes.
He further said through various new tax measures that have been introduced, the revenue collector remains optimistic to cover the deficit.
Three weeks ago, the World Bank warned that the introduction of a duty-free week is likely to only benefit larger, wealthier businesses that can plan for it.
Further, the bank said the plan is difficult to administer and susceptible to abuse, although Felix Mlusu, Minister of Finance told parliament when presenting the national budget the decision is aimed at boosting the growth of small businesses.
During political campaigns last year ahead of the fresh presidential election, Saulos Klaus Chilima, who is now the Vice President in the current Tonse Alliance government, promised Malawians a duty free week once voted into power.