The tobacco market opened with frustrated farmers who bemoaned low price offers by buyers. There was also good news that the president broke to the farmers, announcing that bales lesser than 10 will be free of withholding tax. However, farmers revealed to local newspaper The Daily Times that withholding tax is still being charged.

As the newspaper has revealed some anonymous confirmations, the Ministry of Agriculture, Irrigation and Water Development said that the Tobacco Commission just has to enforce the tax free instruction.

The ministry’s Principal Secretary, Gray Nyandule-Phiri, said he issued an instruction to the Tobacco Commission to implement the President’s instruction. “Expect that those problems will be addressed because remember the President’s directive was issued when the market had just started. We needed to work on how to do it” said Nyandule-Phiri.

On the other hand, economists did not gladly receive the tax free news, saying that the development would negatively affect the economy. The President of the Economic Association of Malawi (Ecama) explained that the development would hold back 3% of revenues that would have been made from selling floors.