BAM to meet finance minister on new tax

The Bankers Association of Malawi – BAM is planning to engage finance minister Sosten Gwengwe to review the recently introduced tax on banks that post more than K10 billion profit.

Gwengwe recently announced the new tax of 40 percent to banks posting the aforementioned profit.

The decision has attracted negative comments from stakeholders who are described it as discrimination.

In an interview with Capital FM, BAM president Macfussy Kawawa said the association plans to meet the minister on the issue.

“We find it appropriate that we engage the authorities to express our views such that there can be a correction in many forms, either a reversal or widening the coverage.

We believe if it is temporary, then we certainly expect that we will be advised on when it will be reversed.” Kawawa said.

In a separate interview, National Bank of Malawi Plc. Board chairperson Jimmy Lipunga concurs with Kawawa by stressing the need to level the playing field to players in the same environment.

“When you have a tax that is targeting a particular segment it becomes a little difficult to accept because why are you being targeted? Is it because you have been successful? Questioned Lipunga.

He added that; “normally we have taxation for all companies that is applicable for all but there is one that has been created specifically for financial institutions -I don’t have reasons why that was done.”

Earlier, consumer activist John Kapito strongly supported finance minister’s decision to impose extra tax on money-making banks arguing that the financial sector is profiting at the expense of depositors.