Minister of Finance Cautions Dedza MRA Officials: “Don’t Underdeclare Goods and Taxes Coming Into the Country in Exchange for Favours”

Malawi Exclusive

Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha on Wednesday issued a stern warning to officials at the Dedza One Stop Border Post against underdeclaring goods and taxes in exchange for favours.

The Minister made the remarks during a tour of the Dedza Domestic Taxation and Customs offices, part of his ongoing visits to various Malawi Revenue Authority establishments across the country aimed at assessing service delivery and revenue performance.

So far, Mwanamvekha has visited MRA offices in Mchinji, Lilongwe Inland, and Lilongwe Domestic.

Speaking at Dedza, Mwanamvekha said with the country facing donor fatigue, all eyes are now on MRA to finance social service delivery.

“Let me start by saying Dedza is one of our strategic border posts. As you know, most of the goods destined for our capital city, Lilongwe, Mzuzu, Zambia and other neighboring countries pass through Dedza. Government has also made significant investment here, that is why we have the One Stop Border Post. You can see the infrastructure,” he said.

He added that the purpose of the visit was to appreciate the performance of both the customs and domestic tax divisions, and to understand the challenges affecting revenue collection.

“From the report we have, Dedza has been able to meet its target year-to-date. Year-to-date means from April to August, because we have just entered September. They have performed well, but there is still room for growth,” Mwanamvekha noted.

The Minister emphasized that more is expected from Dedza compared to other border posts due to the high volume of business, including agricultural exports such as soya, groundnuts, and tobacco that originate from the Central Region.

“That is why it is very strategic for us. I am happy they are making good progress, but we need to do more,” he said.

Mwanamvekha outlined several challenges facing the border, including smuggling.

“You are aware that our border is very porous, and the actual borderline is very close to the border post. That poses a challenge,” he said. Other issues include inadequate staffing and lack of equipment.

The Minister, however, put the strongest emphasis on integrity.

“The other issue which I am emphasizing everywhere I go is integrity. We want to make sure that taxpayers pay what is required. We must avoid underdeclaration. Everyone who is supposed to pay must pay. Don’t underdeclare goods and taxes coming into the country in exchange for favours,” he warned.

He said the visit had been successful as it helped government understand both the performance and the operational challenges at the post.

“We have also agreed on strategies that need to be applied for them to grow revenue at the border post,” Mwanamvekha concluded.

Revenue collection has become critical for government amid reduced donor support, with MRA being tasked to raise more domestic resources to fund health, education and other essential services.