As President Peter Mutharika announced that tobacco bags lesser than 10 will be free of withholding tax, it was reported that the tax was still charged on the sales. The Ministry of Agriculture, Irrigation and Water Development said the problem will be addressed; finally the tobacco farmers are being refunded their taxes, confirmed by Tobacco Association of Malawi (Tama).
Tama Chief Executive Officer Felix Thole confirmed the development and stressed that during the rest of the market season, selling floors will be checked for compliance of the tax free directive.
AHL Group public relations manager Teresa Ndanga confirmed that they complied with the presidential directive and that all qualified small-scale farmers were being exempted deductions.