The Renewable Energy Industries Association of Malawi (Reiama) recently questioned Malawi Revenue Authority (MRA) and Malawi Bureau of Standards (MBS) to explain why there is a charge of import duty and value added tax (VAT) on renewable energy technologies despite being removed by the government.
Reiama engaged the two authorities in a meeting, where executive director Ron Kabvina presented the association’s complaints. In the 2019/20 National Budget, the government announced tax incentives for solar lighting products and other renewable technologies by scrapping off duty, excise and VAT to make solar lights affordable and accessible to Malawians as only around 10 percent of the population is connected to the grid.
Said Kabvina: “We have distributors of these solar energy products who have their products in MRA warehouses for over five months just because the tariffs changed without notice by MRA itself.