Tax justice campaigners said that double taxation agreements that Malawi signed with other countries, are been taken advantage by multinationals, using them for tax avoidance.

Ministry of Finance, Economic Planning and Development spokesperson Davis Sado confirmed that some agreements are being renegotiated. “For some, we concluded and we are still renegotiating with others. Where we are signing agreements with partners, we are ensuring that all these issues are scrutinised,” he said.

An example of taxation loopholes is the Kayelekera Mine, on which Paladin Energy was given a tax break. The campaigners against such agreements are supported by ActionAid, arguing that Malawi has weak taxation frameworks whose loopholes are providing opportunities for tax avoidance.

In March this year, Taxation experts attributed tax evasion and low revenue collection in Africa, to weak taxation laws. African Tax Administration Forum (Ataf) director programs, Mary Baine, said this during the opening of a 3 day Media Engagement and Training on Taxation Issues in Kigali, Rwanda.