Thousands of Malawi businesses close in protest over tax changes

"Demonstrations across Malawi's four main cities during the past week have achieved a delay in the introduction of a new tax regime that business owners claim will cripple their livelihoods. Tens of thousands had signed petitions which this week were presented to tax officials and on Monday thousands of small traders shut up shops and businesses to hold protest marches in Blantyre, Lilongwe, Zomba and Mzuzu."

"Those who closed their shops and walked to tax offices, dressed in black and carrying placards criticising the revenue authority for prioritising hitting the target of revenue collection and celebrating while vendors are having to shutter their businesses, are especially struggling over import and export of goods. A shortage of foreign currency, they say, is pushing them to buy the dollar for imports at almost three times the bank rate."

"A shortage of foreign currency, they say, is pushing them to buy the dollar for imports at almost three times the bank rate. Our businesses are under threat because of the economy, said Robert Nachamba, a representative of small business owners, after a group of 1,000 protesters delivered their petition at the Blantyre revenue authority offices. The country does not have foreign currency in the banks and now the Malawi Revenue Authority is coming with issues that threaten our businesses even furth"

Tens of thousands of Malawians signed petitions and thousands of small traders shut shops to protest in Blantyre, Lilongwe, Zomba and Mzuzu. Protests forced the Malawi Revenue Authority to postpone the electronic invoicing system rollout until April. Traders say the new, more detailed tax regime and the electronic system will cripple livelihoods already strained by foreign-currency shortages. Importers face buying dollars at almost three times the bank rate. The country has seen prior unrest over food and fuel prices, with recent fuel hikes of 41% and electricity increases of 12%. Protesters blame the revenue authority for prioritising revenue targets over vendor survival.

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