Open letter to Malawi Revenue Authority against Carbon tax

Dear Malawi Revenue Authority (MRA),

Here are a few feedback on your introduction of carbon tax:

  1. Carbon tax is best added as a percentage to fuel. It’s true bigger vehicles (and all fuel using machines) pollute more but only if they are on the road more often. So carbon tax is best based on how often you drive. The more you drive the higher you pay hence linking it to fuel makes sense.
  2. May we add to say another compelling reason why carbon tax should be attached to fuel is to ‘conveniently’ secure we broaden the ‘carbon tax net’. It’s an open secret that a number of vehicles, for one reason or another (so many motorcycles, generators including motor vehicles) operate on our roads without ‘proper traffic documentation’. The clear point is you have 100% opportunity to effortlessly collect more revenue.
  3. Do we need to tell you that with this model you will be collecting more on daily, hourly and minute basis, other than waiting for 6 months for vehicle owners to go to road traffic for COF. In fact, if you so wish, you can even collect it on source, upon entry of the fuel tankers as you clear them at the boarders, through Petroleum Importers Ltd or NOCMA. If you tell us you have added 50 tambala on every litre, it won’t even qualify for an entry on this platform and yet that will be massive revenue comparative to those figures you have published per vehicle.
  4. Have you already identified the green initiatives towards which revenue from carbon tax will be channelled. What are these in specific terms. Which government institution (s) will directly benefit from this revenue to implement or monitor the green initiatives.
  5. The Citizen consensus on the street is that we must have an independent organisation/ body, which should be instituted by an act of Parliament, charged with responsibility to collaborate, cordinate, manage or facilitate all green initiatives in this country. This is the institution for example which could have coordinated the 10 billion Kwacha budget passed in 2018 and 2019 towards tree planting initiative. Sadly to note that in my village we haven’t seen any tree being planted under this initiative nor heard anyone carrying out this highly funded program. The point is it’s a huge mistake to channel these funds through account #1. We all know why!
  6. Don’t collect money and then decide what to do with it. There’s is already huge citizen mistrust and dissatisfaction due to ‘perceived rampant abuse’ of public resources and surely there is need for more clarity on this matter.

We await to hear from you soonest.

Yours dissatisfied and frustrated loyal tax payers.

Malawi Citizens.

NBS Bank Your Caring Bank