• November 30, 2022 12:02 am

Government Removes VAT on Cooking Oil, Tap Water

Feb 18, 2022

The key contributing factor for the high cooking oil prices is the huge increase in prices of raw materials that are used for the production of cooking oil, most of which are imported

By Cedric Nkungula

Cooking oil prices are expected to go down as government has removed Value Added Tax (VAT) on cooking oil.

Cooking oil prices have been rising sharply in the recent past and manufacturers attributed the trend to VAT on the product.

Presenting the 2022 / 2023 national budget pegged at K2.84 Trillion titled ‘accelerating Implementation towards wealth creation, job creation and food security’ on Friday in Lilongwe, Finance Minister Sosten Gwengwe said government decided to remove VAT on cooking oil following consultations with various stakeholders.

Gwengwe said he believes that the gesture will have a direct impact on cooking oil prices. He asked cooking oil manufacturers to follow suit.

“The key contributing factor for the high cooking oil prices is the huge increase in prices of raw materials that are used for the production of cooking oil, most of which are imported,” said Gwengwe amid jubilation in the House.

“Regardless, government has henceforth decided to exempt cooking oil from VAT. It is my belief that this gesture will be reciprocated by the cooking oil manufacturing companies by reducing cooking oil prices hence forth.”

Government also indicated that tap water has also been exempted from VAT effective April 1.

According to the finance minister, the move is aimed at ensuring that potable water is accessible to all Malawians at affordable rates.

In the spirit of promoting girl child education, the finance minister also announced the removal of exercise duty on sanitary pads.

“In the spirit of promoting girl child education, government has listened to the contributions that came from various stakeholders and has consequently removed duty and excise tax on sanitary pads as one way of supporting general feminine hygiene,” said Gwengwe.

Government has also removed import duty and excise tax on solar lamps and solar fridges to support the use of alternative sources of energy as well as helping rural masses that are off the national grid.

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