Castel Malawi has decried hefty tax that Malawi Revenue Authority (MRA) imposes on the company, along with a continued decline sales which has kept the beverage giant from maintaining business profitably.

In a statement signed by Castel Malawi’s Managing Director Herve Milhade, it has been announced that due to the obstacles above, Castel Malawi risks closure since MRA has garnished Castel Malawi LTD accounts. According to the statement, MRA advised Castel Malawi to start calculating tax based on ex-factory price (production + margin). The statement reads “As recently as Thursday 13^th June 2019, I met with top MRA officials, Mr Tom Gray Malata (MRA Commissioner General) Mrs. Nellie Jimu (MRA Commissioner of Domestic Taxes). However these efforts have failed and the MRA has issued a final distraint against the company”

Therefore the Managing Director has considered the chance of closure, stating that the Castel Groupe is amidst unrealistic and unaffordable calculations. “