News : TNM WRITES TO FINANCE MINISTER, PROTESTING 1% TAX
In disagreement to the proposed 1% tax imposed on mobile money transactions, Telekom Networks Malawi (TNM) plc has written to the Finance Minister, arguing that should the 1% tax be implemented on mobile money transactions, consumers’ transaction cost by at least 25%.
TNM plc chief executive officer Michiel Buitelaar, outlined in the letter that tax will slow down growth of the mobile money ecosystem. He said that the mobile communications sector is already burdened with higher taxation in excise tax, withholding tax on commissions, income tax, pay as you earn, Tevet levy and value added tax.
During a Digital Financial Services Conference, Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe said that in order to save time and reduce risk of money loss, Malawi needs to adopt digital financial services. In response, Consumers Association of Malawi (Cama) executive director John Kapito said that in order to encourage Malawians into embracing the digital financial services, the central bank should regulate the charges by banks and mobile money players.
Meanwhile, other stakeholders have not welcomed the tax that has been charged on mobile money. Presenting the 2019/20 Budget in parliament, Minister of Finance Joseph Mwanamvekha said that government introduced a 1% tax per transaction on mobile money. The stakeholders also complained that such developments curb Malawians from embracing digital financial services.