STAKEHOLDERS HAIL GAS TAX REDUCTION – Malawi News Online

Last Monday, the Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha, announced of a tax reduction on gas, to promote the usage of clean energy and compliment hydropower in the country, government has removed VAT on liquefied petroleum gas and gas cylinders.

Consumers Association of Malawi (Cama) executive director John Kapito commended the tax reduction, saying the development will boost the usage of gas. “LPG (Propamer is the best alternative energy source to electricity and requires huge subsidies, including its appliances for quick uptake by consumers. We would have loved if there was a lot of awareness on the use and uptake of LPG to reduce the burden on electricity, especially during the peak hours as LPG is mainly used for cooking and other heavy domestic use,” he said.

The 2018 National Energy Policy confirms the several barriers to increased use which mainly are due to its high cost. The policy emphasises on the need to look at ways of doing away with barriers to lower pricing and increased uptake of LPG and to identify potential partnerships to promote greater market penetration.