By Chisomo Phiri
BLANTYRE-(MaraviPost)-The Ministry of Trade and Industry in conjunction with Competition and Fair Trading Commission (CFTC) has warned oil producing and supplying companies in the country that are not abiding by the government’s 16.5% Value Added Tax (VAT) reduction on cooking oil.
This was revealed in a statement signed by the Minister of Trade and Industry Mark Katsonga Phiri.
In the statement, the ministry said despite government announcing scrapping of VAT on edible cooking oil across the country, some suppliers and retailers of the product are still not following the suit to reduce the prices.
The ministry also said it was expecting that the prices of the edible cooking oil will go down by now since government ceased from charging VAT as per the gazetted notice issued by the Ministry of Finance.
“In view of the above, the Ministry of Trade and Industry wishes to issue a final warning to all perpetrators that through the laws, drastic action will be applicable to all traders that are not by the said Gazzete notice,” reads part of the statement.
Meanwhile, the Minister has called on cooking oil consumers in the country to report suppliers that have not yet reduced the prices with immediate effect that government can take its urgent action.
Malawi Government removed VAT on cooking oil with expectation that the price of the commodity to go down in February this year during 2022 -2023 budget presentation.
However, prices of the commodity have remained high despite government ‘s warning to issue penalties to traders that are still charging VAT on cooking oil.