Oxfam in Malawi and ActionAid Malawi have

asked the Treasury to raise the corporate tax rate, a move that the NGOs say will attract Foreign Direct Investment (FDI).

According to its latest country brief on Commitment to Reduce Inequality (CRI) index for 2020, Oxfam in Malawi says FDI is attracted to countries offering access to markets and profit opportunities; a predictable and nondiscriminatory legal and regulatory framework; macroeconomic stability; skilled and responsive labour markets; and well-developed infrastructure.

Malawi’s tax on corporations has been at 30% for years, but some tax experts argue that the rate is relatively lower compared to other neighbouring countries such as Zambia which is taxing corporate entities at a rate of 35% on income or capital.