Williams Banda

The Institute of Chartered Accountants in Malawi (Icam) has said government should create an efficient tax system which will answer to the development needs of the country.

Speaking in an interview, Icam Vice President Moffat Ngalande said the challenge comes because the country has an informal and cash-based economy.

“This brings challenges in terms of how we can record transactions in the economy and create policies which are responsive to the real needs. Therefore government should deal with these two problems,” he said.

Tax expert Emmanuel Kaluluma said the actual problem is lack of tax education and the unpatriotic behaviour of some tax officers and government officials.

“The real problem is that when tax is collected, most of the times it is mismanaged. Therefore, we need tax education as well as responsible and accountable officers who would handle revenue so that this country develops,” Kaluluma said.

In an earlier interview, spokesperson in the Ministry of Finance Williams Banda indicated that all suggestions pertaining to amendments in the tax regime are taken during budget consultation meetings and those considered are reflected in the national budget.

Budget Director Loyce Chirinsungwi said the government was moving towards automating all public sector transactions.

Chirinsungwi added that the government was working on procuring personal digital transaction gadgets to be placed in departments such as Road Traffic where payments such as fines will be made direct to Account Number One.

“We want to make sure that there is little handling of cash so that, every time there is a fine it is facilitated through the gadgets connected directly to the government systems, thereby curbing the cash problem we are facing,” she said.

Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.

He is however flexible as he also writes about current affairs and national issues.

Source Link

Let us know what you think of this article and remember to add us on our facebook and follow us on our twitter. Come back daily for more Malawi business news.

Quick Links: Download Business eBooks | Ten Signs You Are An Entrepreneur | What is a Managing Director?

The post Icam calls for tax regime overhaul appeared first on Business Malawi.